Guidance for Landlords on Tenancy Deposit Protection
Deposit Protection aims to ensure that Deposits paid by Assured Shorthold Tenants are kept safe and that Landlords act properly in making deductions from Deposits. Deposit Protection was introduced in 2007 when sections 212-215 and Schedule 10 were inserted into the Housing Act 2004. Further provisions were added in 2015.
The law relating to tenancy deposits has been further 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 for Landlords on Tenancy Deposit Protection explains the need for Tenancy Deposits to be protected in one of the official Tenancy Deposit Schemes.
The Guidance briefly considers how the Schemes work and what happens if there is a dispute as to the amount of the Deposit to be returned to the Tenant at the end of the tenancy.
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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