Tenancy Deposit Scheme

 

In England and Wales if you rent a property to a tenant and take a deposit you must place it in an government approved tenancy deposit schemes. The current schemes are:

  • Deposit Protection Scheme
  • My Deposits
  • Tenancy Deposit Scheme

Within 30 days of receiving the deposit it must be protected in one of the above schemes and you must provide the tenant with certain information in the form of a certificate, often referred to as “prescribed information”. You must provide the tenant with the name and address of the scheme operator, confirmation of how much deposit has been paid and the scheme’s terms and conditions including when and how the deposit will be repaid.

If a Landlord fails to do any of the above the tenant can apply to the county court. The court can order that the Landlord repays the deposit to the immediately and can also order that he or she pays up to three times the amount the deposit to the tenant in damages. This could potentially be a significant sum.

A Landlord would also be unable to serve a Section 21 (no fault) Notice to the tenant giving two months notice to regain possession of the property. This severely restricts the Landlord’s ability to regain possession of the property.

Sarginsons Law has extensive experience of dealing with deposit protection dispute and of evicting tenants when deposits haven’t been protected in the 30 days period.

See our Tenancy Deposit Scheme Disputes page for guidance on how Landlords can deal with these types of disputes.

23rd February 2019

Sarginsons Law