From 6 April 2007, landlords entering into new tenancy agreements are required to place any deposit with a Government authorised scheme, which will safeguard the money and offer independent adjudication in the event of any dispute. Tenants who have kept their rented property in good condition can be confident that they will not have all or part of their deposit withheld on spurious grounds, which has been a common complaint made by tenants. 

The alternative dispute resolution service (ADR) will also encourage tenants and landlords to have a clear agreement on the condition of the property through use of inventories. This will ensure that landlords are also protected.

TDP will apply to all assured shorthold tenancies (ASTs) in England and Wales, where a deposit is taken. Virtually all new contracts to let a property are ASTs. The TDP will add to the other measures set out in the Housing Act 2004 to drive up standards in the private rented sector, including licensing multiple occupancy homes and new safety rules.

For further information see www.direct.gov.uk/tenancydeposit (external link)
 

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