Tenancy Deposit Protection (TDP)
Tenancy Deposit Protection (TDP) has added to the measures already brought in to drive up standards in the private rented sector set out in Housing Act 2004. Those measures include licensing multiple occupancy homes and new safety rules. TDP applies to all assured shorthold tenancies (ASTs) in England and Wales, where a deposit is taken. Virtually all new contracts to let a property are ASTs.
There are two main aims:
• To ensure good practice in deposit handling, so that when a tenant pays a deposit and is entitled to get it back, they can be assured that this will happen.
• To assist with the resolution of disputes by having an alternative dispute resolution service (ADR). It will also encourage tenants and landlords to have in place, from the outset, clear agreement on the condition of the property through best practice, such as the use of inventories, and agreement on the condition of the property.
TDP in summary:
• Landlords are required to join a statutory tenancy deposit scheme, if deposit taken.
• This means that deposits are safeguarded.
• Tenants will get all or part of their deposit back, if they have kept the property in good condition and are entitled to get their deposit back.
• The scheme offers alternative ways of resolving disputes which aims to be faster and cheaper than taking court action.