Property Articles

The Tenancy Deposit Protection (or the Tenancy Deposit Scheme) is aimed at helping protect landlords and tenants for raising standards in the residential lettings market for all the Assured Shorthold Tenancies.

The Housing Act 2004 first announced the introduction of the Tenancy Deposit Scheme in 2005.

The launch date was then deferred to April 2006 in order for the Government to handle concerns by key stakeholders, including tenants, landlords and letting agents.

Again the scheme was put back to October 2006.

We are now in October 2006 and the Government seems to be in need of yet more time. Following consultations with the key stake holders, one of the main issues seems to be about the release of deposits where there are rent arrears and abandonment of tenancies. So, the new provisional start date is set for April 2007.
It will also allow more time to inform those involved about tenancy deposit protection.

This article is merely our interpretation of the important changes in the way tenancy deposits are dealt with. We would advise all our landlords and tenants to seek further advice. Comprehensive information and a good FAQ can be obtained from the “Communities and Local Government” website at http://www.communities.gov.uk/index.asp?id=1503894 .

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