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 (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.
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.
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