Tenancy Deposit Scheme: Information for Landlords

The Government’s new Tenancy Deposit Scheme came into force on the 6th April 2007. Since then, any tenancy deposits received in connection with an AST - assured shorthold tenancy - must be handled in accordance with one of the three Government approved schemes. This is to ensure the tenant’s deposits are protected.

! WARNING !

If you take a tenancy deposit which should be protected but you fail to comply with the tenancy deposit protection legislation then –

• Following a Court Order you face a penalty of three times the amount of the deposit.  This is an automatic penalty and cannot be reduced.
• You cannot serve a valid Section 21 notice so as to bring the tenancy to an end on the so called notice only/shorthold ground.  It does not, however, stop you serving notice under Section 8 (e.g. in relation to rent arrears or other tenancy breaches).

Important – Disclaimer

The information contained on this website is provided by the Residential Landlords Association (RLA) in good faith based on available legal advice.  However, ultimately, interpretation of legislation is a matter of the Courts.  As with any new legislation there will be Court decisions which will affect its interpretation.  The RLA, its directors, officers and employees, cannot accept liability for any claim, whether legal or otherwise, for any advice given or statement made in relation to the tenancy deposits.  This includes information given by the RLA through its help line  or any other literature distributed by the RLA.  All such liability is expressly disclaimed.  Landlords must take their own professional advice and should rely on this; not any advice given by the RLA.