Deposit protection scheme
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.
The landlord or agent pays the tenant's deposit to the scheme, where it will be kept until the end of the tenancy.
The landlord or agent keeps the tenant's deposit into a nominated account but pays an insurance premium to the scheme – meaning the tenant's 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
Your local Northwood office will be able to deal with the protection of the deposit if they have been instructed to manage the property on your behalf, and to give you more information of the relevant deposit protection provider.