Deposit Protection Schemes exist to ensure that Deposits paid by Assured Shorthold Tenants are kept safe and that Landlords act properly in making deductions from Deposits. Landlords of Assured Shorthold Tenants must protect their Tenants’ Deposits in an approved Tenancy Deposit Scheme.
This Guidance on Protection of Assured Shorthold Tenants’ Deposits gives an overview of how the Schemes work and looks at what happens if there is a dispute concerning the amount of the Deposit to be returned to the Tenant when the tenancy ends.
The law relating to tenancy deposits has been
further amended by the Tenant Fees Act 2019 (in force on the 01 June 2019),
which affects landlords and letting agents in England only. The Tenant Fees Act introduces capped
security deposits and holding deposits. It also introduces set timeframes for repayment of the holding deposits.Lettings entered into (new and renewed) will
be affected from 01 June 2019.
deposits for tenancies in Wales are not currently capped but the Renting Homes
(Fees etc.) (Wales) Act 2019 (due to come in force 01 September 2019) gives the
Welsh government the power to introduce caps in the future.
Under the Renting Homes (Fees etc.) (Wales) Act
2019 holding deposits are to be capped at one weeks’ rent which is the same
under the Tenant Fees Act 2019 and will also be subject to strict timeframes
for repayment of the holding deposits.
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