Deposit Protection Service

Tenancy Deposit Protection (TDP) schemes ensure that money taken from a tenant as a deposit is kept safe throughout the duration of the tenancy.

Within England & Wales there are two types of TDP schemes – custodial and insurance-based. In Scotland only custodial schemes are available.

Custodial schemes – the landlord or agent pays the tenants deposit to the scheme, where it will be kept until the end of the tenancy.

Insurance schemes – the landlord or agent keeps the tenants deposit in a nominated account but pays an insurance premium to the scheme – meaning the tenants deposit is protected
It is important for landlords (or their letting agents) to be fully aware of the laws and penalties relating to deposit protection. A court can order landlords to make a compensation payment to the tenant of up to 3 times the value of the deposit if they fail to:

• protect a tenants deposit within 30 days
• give the tenant details of the scheme used within 30 days

We will be able to deal with the protection of the deposit if we have been instructed to manage the property on your behalf, and to give you more information of the relevant deposit protection provider.