The Tenancy Deposit Protection scheme (TDP) came into effect in England and Wales on 6 April 2007 as part of the Housing Act 2004.

Similar measures came into force in Scotland from 2 October 2012, and in Northern Ireland on 1 April 2013.

What does TDP involve?

The law requires all deposits taken by landlords on assured shorthold tenancies to be monetary and protected in a government-authorised deposit protection scheme.

Landlords should not be misled into believing that they can bypass the legislation by taking what amounts to a deposit in a different way.

The courts are finding against landlords who claim not to have taken a deposit when in fact they have.

For more information, you can refer to the online library.

The NLA View

It’s important to understand that the government’s main aim is to safeguard the tenant from malpractice by influencing positive landlord-tenant relationships, whilst also raising the standards of the private rented sector.

To ensure that any legitimate, competing landlord issues would be taken into account and safeguarded, The NLA petitioned for a contract to run an insurance-based scheme, in partnership with our insurance advisers, Hamilton Fraser plc.

This would enable landlords who regarded the taking and holding of deposits to be an important part of their lettings business to continue to do so.

In response to these representations, the government amended their proposals to include provision in the subsequent legislation for insurance-based options to operate alongside a default custodial scheme.

Find out more about our recommended Tenancy Deposit Protection schemes:

my|deposits

my|deposits Scotland

my|deposits NI