Tenancy Deposit Protection Scheme
The Housing Act 2004 made provision for both the protection of tenancy deposits and a resolution of disputes over their return. From 6th April 2007 all deposits for Assured Shorthold Tenancies must be held under a scheme authorized by the government.
The Housing Act 2004 made provision for both the protection of tenancy deposits and a resolution of disputes over their return. From 6th April 2007 all deposits for Assured Shorthold Tenancies must be held under a scheme authorized by the government. This applies to new and renewed tenancies commencing after that date. There are three approved schemes available: The Deposit Protection Service, Tenancy Deposit Solutions and the TDS run by The Dispute Service.
Landlords who do not comply with the legislation cannot regain possession of their property using the usual Section 21 Notice. Furthermore the tenant can apply for a court order requiring the landlord to repay the monies held or safeguard the deposit under the Custodial Scheme. The court will also order the Landlord to pay the tenant a fine of three times the value of the deposit.
Plaza Estates took part in the trial scheme set up in 2003 by the Dispute Service for ARLA members and have enrolled as full members of the new TDS scheme. We are pleased to be able to offer this service to our clients without extra charge to them (unless there is a dispute when a nominal administration fee is payable). The scheme so far is working well although it has involved considerable work for us to ensure our Tenancy Agreements comply with the strict requirements stipulated by the Government. In addition, all tenancies are registered and certificates are given to each tenant. We have used the arbitration service once so far and found this to be a fair and very cost effective route for landlords and tenants in resolving a dispute.
Fiona Guthrie
Residential Lettings Director
Knightsbridge Office
The Housing Act 2004 made provision for both the protection of tenancy deposits and a resolution of disputes over their return. From 6th April 2007 all deposits for Assured Shorthold Tenancies must be held under a scheme authorized by the government. This applies to new and renewed tenancies commencing after that date. There are three approved schemes available: The Deposit Protection Service, Tenancy Deposit Solutions and the TDS run by The Dispute Service.
Landlords who do not comply with the legislation cannot regain possession of their property using the usual Section 21 Notice. Furthermore the tenant can apply for a court order requiring the landlord to repay the monies held or safeguard the deposit under the Custodial Scheme. The court will also order the Landlord to pay the tenant a fine of three times the value of the deposit.
Plaza Estates took part in the trial scheme set up in 2003 by the Dispute Service for ARLA members and have enrolled as full members of the new TDS scheme. We are pleased to be able to offer this service to our clients without extra charge to them (unless there is a dispute when a nominal administration fee is payable). The scheme so far is working well although it has involved considerable work for us to ensure our Tenancy Agreements comply with the strict requirements stipulated by the Government. In addition, all tenancies are registered and certificates are given to each tenant. We have used the arbitration service once so far and found this to be a fair and very cost effective route for landlords and tenants in resolving a dispute.
Fiona Guthrie
Residential Lettings Director
Knightsbridge Office
