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 amended by the Tenant Fees Act 2019 (the 'TFA') which affects landlords and letting agents in England only and the Renting Homes (Fees etc.) (Wales) Act 2019 ('the 'RHFWA') (in force 01 September 2019) which affects Wales only. Both acts introduced capped holding deposits and strict time frames for repayment of holding deposits for tenancies caught by these acts.
The TFA introduced capped security deposits. Security deposits for assured shorthold tenancies in Wales are not currently capped but the RHFWA (in force 01 September 2019) gives the Welsh government the power to introduce caps in the future.
This Guidance has been updated to incorporate the requirements relating to holding deposits in Wales from the 28 February 2020 set out in The Renting Homes (Fees etc.) (Holding Deposit) (Specified Information) (Wales) Regulations 2019.
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