The Law relating to Tenancy Deposits came into force on the 6th April 2007. From this date, all landlords and their agents are required to ensure that any deposit required in relation to an assured shorthold tenancy is safeguarded by a tenancy deposit scheme (TDS).

Within 14 days of the landlord or agent receiving a deposit, he must ensure that the deposit is safeguarded by an authorised TDS in accordance with the scheme’s requirements and give the tenant prescribed information, such as which scheme is safeguarding their deposit, the procedures that apply under the scheme etc.

TDS schemes have two main purposes; To safeguard tenancy deposits paid in connection with an assured shorthold tenancy and to facilitate the resolution of disputes arising in connection with such deposits.

Pursuant to the legislation a landlord is prevented from serving a notice under section 21 of the Housing Act 1988 at any time where a deposit is not being safeguarded in accordance with an authorised scheme or the prescribed information has not been given.

There are three tenancy deposit schemes: 

The Deposit Protection Service - the only custodial deposit protection scheme – is free to use and open to all Landlords and Letting Agents, who can register and make transactions online. The scheme is supported by an independent dispute resolution service. For more information, visit or call 0870 7071707

Mydeposits – this is a privately run insurance-based deposit protection and dispute resolution scheme – for a fee, enables Landlords or Agents to hold deposits. For more information, visit or call 0871 7030552

The Tenancy Deposit Scheme - insurance based deposit protection and dispute resolution scheme primarily for the Lettings industry. For more information, visit or call 0845 2267837