On 6 April 2007 Statutory Instrument number 797 of the Housing (Tenancy Deposit) (Prescribed Information) Order came in to force. This sets out a new statutory scheme to protect deposits paid by tenants to their Landlords.

The statutory instrument arises out of the Housing Act 2004. The Tenancy Deposit Scheme (TDS) will apply to all assured shorthold tenancies entered in to after 6 April 2007 where the Landlord asks the tenant for a deposit. It is often standard practice for Landlord’s to request the payment of the deposit to cover the cost of damage and failure to pay rent. The Housing Act 2004 required the Government to set up a Scheme to safeguard the deposits held by Landlords. The new scheme provides a safe guard and also sets out an arrangement for resolving disputes between Landlords and Tenants. Three Schemes have been approved. Deposit Protection Scheme, which is self funded by the deposits held: the Tenancy Deposit Solutions which is a partnership between the National Landlord Association and Hamilton Fraser Insurance and the Tenancy Deposit Scheme run by the Dispute Service.

Further information can be obtained by contacting 1st Solicitors.