The Tenant Deposit Protection (TDP)
Safeguarding your deposit:
Tenant Deposit Protection (TDP) was introduced in April 2007 as part of the Housing Act 2004 for all assured short tenancies in England and Wales where a deposit was taken. From April 2012 it is a legal requirement to protect any deposit you obtain within 30 calendar days of receiving it, and not from when the funds have been cleared.
Landlords Legal Obligation:
If you fail to comply with your legal obligations, there are two possible sanctions:
- You cannot end the tenancy agreement or regain possession of your property under section 21 of the Housing Act 1998 until the deposit has been repaid or a court case has ended
- Your tenant can apply to a county court to receive compensation between one and three times the original deposit’s value if they think their deposit is not protected or they have not received information about the scheme you protected their deposit with
Tentant Legal Obligation:
The TDP makes sure you will get your deposit back if you:
- Meet the terms of your tenancy agreement
- Don’t damage the property
- Pay your rent and bills
At the end of your tenancy
- Your landlord must return your deposit within 10 days of you both agreeing how much you will get back
- If you are in dispute with your landlord, then your deposit will be protected in the TDP scheme until the issue is resolved
Your landlord does no5t have to protect a holding deposit (money you pay to ‘hold’ a property before an agreement is signed). Once you become a tenant, the holding deposit becomes a deposit, which the landlord must protect.
Deposits made by a third party:
Your landlord must use a TDP scheme even if your deposit is paid by someone else, e.g. a rent deposit scheme or your parents.
The Deposit Protection Scheme (DPS) is a government custodial scheme for tenancy deposit protection and it is free!