Tenants Deposit Scheme

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    Tenants Deposit Scheme

    "Deposit Consultation

    Part 6 of the Housing Act 2004 introduces the power for the government to introduce statutory control over the holding of tenants’ deposit money. There is little detail in the act, just the basic framework and the consultation about the secondary legislation (the regulations) necessary to bring in such schemes has now been published by the ODPM.

    The consultation can be downloaded from:


    This is an area of legislation that will affect the vast majority of landlords as it will apply to any assured shorthold tenancy set up after the regulations come into force, on which a deposit is paid.

    The consultation gives some background information indication the statistics behind the reason for the legislation. It also seeks views on a range of questions specifically asked or any other points to be raised.

    To ensure fair and reasonable legislation it is important that as many as possible read the consultation and respond.

    The most negative part is that if the both parties do not sign to accept the decision of the alternative dispute resolution decision, then the only way for either party to get the money will be to agree or get a court order. This could significantly increase court work, not reduce it. It could also significantly increase the problems of a tenant moving out without notice. If you cannot get the agreement of the tenant, then it may be necessary to get a court order before the deposit can be used.

    The consultation period ends on the 1 February 2006."

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