The Deposit Protection Scheme

Briscombe Nutter & staff is a member of the Tenancy Deposit Scheme

The Legislation

As part of the Housing Act 2004, the Government introduced tenancy deposit protection for all assured shorthold tenancies(AST’s) in England and Wales where a deposit is taken. From April 6th 2007, all deposits paid under an AST have had to be protected within 14 calendar days of receipt by the Landlord.
The purpose of the legislation is to ensure that tenants who have paid a deposit to a Landlord or Letting Agent and are entitled to receive all or part of it back at the end of a unsecured loans tenancy ACTUALLY GET IT!

Who is Affected?

The legislation covers virtually all AST contracts through which private landlords let property in England and Wales.
However the following will not need to registered with a tenancy deposit protection scheme :

1. Resident Landlords(those living in the property)
2. Landlords of properties where the rent is over £25,000 per annum
3. Company Lets
4. Student accommodation let directly by universities or colleges.

Deposits taken before 6th April 2007 do not need to be protected by a deposit protection scheme. However, as an existing tenancy is renewed and a landlord agrees a new bad credit loans fixed-term tenancy, the initial deposit taken must then be lodged with a tenancy deposit Scheme.