New tenancy deposit protection scheme launched

by Daniel Jones

A new tenancy deposit protection scheme is being launched in England & Wales to offer greater choice to private sector landlords. Created by the Tenancy Deposit Scheme (TDS) in association with the Residential Landlords Association (RLA), it is hoped the new offering will assist landlords looking to make the most of the growing buy-to-let sector.

Any assured shorthold tenancy that started after April 2007 must be protected through a government authorised deposit protection scheme for landlords. Failure to do so can mean fines of up to three times the deposit amount.

Until now, the Tenancy Deposit Scheme has been available primarily to regulated letting agents. To be called Deposit Guard, the new scheme will provide private landlords with much greater choice in the market.

Steve Harriott, chief executive of the TDS, says: "Landlords can save time and money by keeping hold of the deposit - as well as taking advantage of market-leading rates."

RLA chairman Alan Ward added: "DepositGuard enables the Residential Landlords Association to offer competitive deposit protection without compromising our position in representing landlords' interests.

"The systems and documentation are also ready for changes being introduced by the government in April and are designed to give better protection to landlords."                                 

Deposit Guard allows landlords to hold deposits throughout a tenancy and to take advantage of the dispute resolution service.

Landlords based in England and Wales must provide the tenant, when setting up their tenancy agreement and within 14 days, the details on how their tenancy deposit is protected.

A Section 213 Notice, also known as a Tenancy Deposit Protection Form, ensures landlords give tenants the right information at the start of their agreement concerning their tenancy deposit protection, in compliance with the Housing Act 2004.

  • Landlord and Tenancy News from Lawpack: Give tenants the right information concerning their tenancy deposit protection with our Section 213 Notice.

Published on: January 31, 2012

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