Housing

Tenancy Deposit Protection

News releases and announcements

Introduction

Tenancy Deposit Protection (TDP) was introduced by the Housing Act 2004 as part of a package of measures to raise standards in the private rented sector.

Since 6 April 2007, all deposits (for rent up to £25,000 per annum) taken by landlords and agents for assured shorthold tenancies (AST) in England and Wales have had to be protected by an authorised tenancy deposit scheme.

ASTs are the usual tenancies made between a private landlord and his tenants.

There are two main aims:

  • to ensure good practice in deposit handling, so that when a tenant pays a deposit, and is entitled to get it back, he or she can be assured that this will happen
  • to assist with the resolution of disputes by having an alternative dispute resolution (ADR) service (external link). It will also encourage tenants and landlords to agree - at the start of the tenancy - the condition and contents of the property

A landlord is ultimately responsible for ensuring that any deposit he or she takes from a tenant in respect of an AST is protected and that the statutory requirements of tenancy deposit protection are met.

The legislative background to Tenancy Deposit Protection

The requirements are set out in the Housing Act 2004 in sections 212 - 215 and Schedule 10 and came into effect on 6 April 2007.

Statutory Instruments relating to the implementation of the Tenancy Deposit Schemes and which apply to England and Wales were made, and published on 15 March 2007.  

Tenancy Deposit Schemes are used to safeguard tenancy deposits paid in connection with shorthold tenancies.  A shorthold tenancy is defined in section 212 (8) of the Housing Act 2004 as being an assured shorthold tenancy within the meaning of Chapter 2 of Part 1 of the Housing Act 1988.

The Statutory Instruments are available on the Office of Public Sector Information website:

The Housing (Tenancy Deposit Schemes) Order 2007 - No 796  

The instrument makes amendments to Schedule 10 of the Housing Act 2004.  

The Explanatory Memorandum and Regulatory Impact Assessment is available at:

The Housing (Tenancy Deposit) (Prescribed Information) Order 2007 - No 797

The instrument sets out the prescribed information which a landlord/agent must pass on to the tenant at the beginning of the tenancy if he receives a tenancy deposit (ie within 14 days of the landlord/agent receiving the money from the tenant).

The Explanatory Memorandum and Regulatory Impact Assessment  is available at:  

The Housing (Tenancy Deposit) (Specified Interest Rate) Order 2007 - No 798

The instrument sets out the interest rate which will be applied to a tenancy deposit that is safeguarded in the custodial scheme, when it is repaid to the person entitled to it.

Key facts and figures

In the first year of operation one million deposits have been protected, totalling nearly £900m at a rate of more than 2,500 deposits a day.  

Information for landlords/agents and tenants

Information on the tenancy deposit protection schemes and how they work can be found:

  • on the Directgov website at: www.direct.gov.uk/tenancydeposit  (external link). Includes Tenancy Deposit Protection leaflets (available in several languages) 
  • from the three government approved scheme providers:

1. The Deposit Protection Service (DPS) is the only custodial deposit protection scheme. For more information, visit  www.depositprotection.com (external link) or call 0870 707 1707.

2. MyDeposit (previously Tenancy Deposit Solutions Ltd) is an insurance-based scheme sponsored by the National Landlords Association and administered by Hamilton Fraser Insurance Services.  For more information, visit www.mydeposits.co.uk (external link) or call 0871 703 0552.

3. The Tenancy Deposit Scheme (TDS) is an insurance-based deposit and dispute resolution scheme. For more information, visit www.tds.gb.com (external link) or call 0845 226 7837.

Contact us

Private Housing Management Conditions and Adaptations
Communities and Local Government
1st Floor
Eland House
Bressenden Place
London
SW1 5DU

Telephone. 020 7944 4400
Email. contactus@communities.gsi.gov.uk  

Key words: Tenancy deposit protection, TDP, tenant deposit schemes, assured shorthold tenancies, AST, landlord, tenant

In this section

My favourites