Tenancy Deposit Scheme is a government approved tenancy deposit protection scheme in England and Wales operated by TDS, the UK’s leading provider of deposit protection and resolution services.

There is a legal requirement for landlords and letting agents to protect deposits paid bt contract-holders (tenants). 

Tenancy Deposit Scheme is the longest running government-approved deposit protection scheme backed by RICS, Propertymark, and the NRLA. We are the only not-for-profit scheme, so we can reinvest for the industry and our customers.

We will request a deposit from the contract-holder (tenant) which will be registered with TDS, for the following purposes:-

1. Any damage, or compensation for damage, to the premises its fixtures and fittings or for missing items for which the tenant may be liable, subject to an apportionment or allowance for fair wear and tear, the age and condition of each and any such item at the commencement of the tenancy, insured risks and repairs that are the responsibility of the landlord.
2. The reasonable costs incurred in compensating the landlord for, or for rectifying or remedying any major breach by the tenant of the tenant's obligations under the tenancy agreement, including those relating to the cleaning of the premises, its fixtures and fittings.
3. Any unpaid accounts for utilities or water charges or environmental services or other similar services or Council Tax incurred at the property for which the tenant is liable.
4. Any rent or other money due or payable by the tenant under the tenancy agreement of which the tenant has been made aware and which remains unpaid after the end of the tenancy.

We are members of the Tenancy Deposit Scheme, which is administered by:

The Dispute Service Ltd
West Wing First Floor The Maylands Building
200 Maylands Avenue,
Hemel Hempstead,
England,   HP2 7TG

Phone 0300 037 1001
e-mail - info@propertyredress.co.uk
Website: https://www.propertyredress.co.uk

The Property Redress Membership Number: PRS011526

If we are/ the Agent is instructed by you/the Landlord to hold the Deposit, we/ the Agent shall do so under the terms of the Tenancy Deposit Scheme.

The Agent holds tenancy deposits as Stakeholder (.if not already specified within the Tenancy Agreement).
At the end of the tenancy covered by the Tenancy Deposit Scheme

1. If there is no dispute we/the Agent will keep any amounts agreed as deductions where expenditure has been incurred on behalf of the Landlord, or repay the whole or the balance of the Deposit according to the conditions of the Tenancy Agreement with the Landlord and the Tenant. Payment of the Deposit will be made within 10 working days of written consent from both parties.
2. If, after 10 working days* following notification of a dispute to the Agent/Member and reasonable attempts have been made in that time to resolve any differences of opinion, there remains an unresolved dispute between the Landlord and the Tenant over the allocation of the Deposit it will (subject to B 4.3 below) be submitted to the I Independent Case Examiner (E f)or adjudication. All parties agree to co-operate with any adjudication.
3. The statutory rights of either you/the Landlord or the Tenant(s) to take legal action against the other party remain unaffected.
4. It is not compulsory for the parties to refer the dispute to the ICE for adjudication. The parties may, if either party chooses to do so seek the decision of the Court. However, this process may take longer and may incur further costs. Judges may, because it is a condition of the Tenancy Agreement signed by both parties, refer the dispute back to the ICE for adjudication. If the parties do agree that the dispute should be resolved by the ICE, they must accept the decision of the ICE as final and binding.
5. If there is a dispute I/we must remit to The Dispute Service Ltd the full deposit, less any amounts already agreed by the parties and paid over to them. This must be done within 10 working days of being told that a dispute has been registered whether or not you or I/we want to contest it. Failure to do so will not delay the adjudication but The Dispute Service Ltd will take appropriate action to recover the deposit and discipline me/us.
6. The Agent/we must co-operate with the ICE in the adjudication of the dispute and follow any recommendations concerning the method of the resolution of the dispute.

Dealing with disputes from non-ASTs: The Independent Case Examiner (ICE) may agree to resolve any disputes over the allocation of these deposits, by arrangements. If he does:-

• The ICE will propose what he considers the most effective method of resolving the dispute.
• Landlord, tenant and agent must consent in writing his proposal.
• Disputes will be subject to a fee of £500 + VAT, or 10% of the deposit + VAT, whichever is greater.
• The resolution process will not start until the parties' consent, the disputed amount and the fee have been submitted.

Incorrect Information

The Landlord warrants that all the information he has provided to the Agent is correct to the best of his knowledge and belief. In the event that the Landlord provides incorrect information to the Agent which causes the Agent to suffer loss or causes legal proceedings to be taken the landlord agrees to reimburse and compensate the Agent for all losses suffered.

Landlord independently holding deposit outside TDS

• If you/the landlord decide(s) to hold the deposit yourself in relation to an Assured Shorthold Tenancy, we will transfer it to you within 5 days of receiving it. You/the landlord must then register it with another Tenancy Deposit Protection Scheme within a further 25 days if the tenancy is an Assured Shorthold Tenancy. If you fail to do so the Tenant can take legal action against you/the landlord in the County Court. The Court can make an order stating that you/the landlord must pay the deposit back to the Tenant or lodge it with a custodial scheme which is known as the Deposit Protection Service. In addition a further order will be made requiring you/the landlord to pay compensation to the Tenant of between one and three times the amount of the Deposit.
• If a landlord fails to meet the initial requirement to protect the deposit, no Section 21 Notice can be served until either the landlord returns the deposit to the tenant in full or with such deductions as the tenant agrees; or if the tenant has taken proceedings against the landlord for non-protection and those proceedings have been concluded, withdrawn or settled (for example, by the court awarding damages being the return of the deposit or a fine not more than three times the value of the deposit).
• If a landlord fails to serve Prescribed Information (s)he cannot serve a Section 21 Notice until the Prescribed Information has been served - but this can be more than 30 days after receiving the deposit. This will not prevent a tenant from issuing proceedings for late provision of the Prescribed Information and seeking a penalty award.

Tenants can make an application to a county court for a penalty award even where the tenancy has ended, and can do so for up to six years.

If you/the Landlord decide(s) to hold the deposit and the Tenancy is an Assured Shorthold Tenancy you/the landlord must specify to us/the Agent prior to the start of the Tenancy under which other Tenancy Deposit Solutions you/the landlord must provide proof of membership, together with a copy of the insurance policy before the Deposit can be released. If the Deposit is to be sent to the custodial scheme known as the Deposit Protection Service (DPS) we/the Agent will forward the Deposit to the DPS and register the details of the Tenancy on your behalf OR give you a cheque for the amount of the deposit made payable to the DPS for you to forward within 25 days.