Please Note: This Article is 3 years old. This increases the likelihood that some or all of it's content is now outdated.

Today’s Queen’s Speech confirmed, that the Conservative Manifesto promise to introduce, “Lifetime Deposits”, will be on the legislative programme for the new Government.

The idea, also known as tenancy deposit passporting, essentially means that a deposit can be transferred between properties and landlords without a tenant needing to find a temporary second deposit after they leave a tenancy.

The Ministry of Housing, Communities and Local Government (MHCLG) have written to members of the Tenancy Deposit Protection Working Group, which was set up by the Ministry to explore changes and innovation within the current tenancy deposit process. They explain that they intend to get the ‘Lifetime Deposits’ concept into law at a pace and have instructed the group to move to a second phase of the developing workable models for the imminent implementation of the policy.

A timetable is being drawn up in the next couple of weeks for the group to deliver this piece of work and it is expected to start on the programme, very early in the New Year.

It is likely that the conclusions will lead to a proposal that will form part of the forthcoming Renters’ Reform Bill which the Government have promised will be put before Parliament during the current session. Eddie Hooker of mydeposits who sits on the Working Group, told LandlordZONE. “We have been expecting this announcement for a little while and the group has been looking at the idea as part of our work. Now this is an official Government objective we will actively embrace the challenge and opportunity of this major reform to the deposit process and to deposit protection”

Please Note: This Article is 3 years old. This increases the likelihood that some or all of it's content is now outdated.


  1. Exactly my thoughts. Also that it may take a few days after a tenant leaves to check things over properly and work out the costs from any damage, might work for students going home at end of term but most tenants would be moving from one rental to another. So the way round it would be an insurance policy to reimburse the landlord but the premium for bad tenants would rise and they would never be any better off.

  2. The primary purpose of the Deposit is to provide security in the event of any claims aganst the tenant when they vacate and as such is an incentive to the tenant to ensure they return the property to the same standard (less reasonable ‘wear and tear’) as when they first took on the tenancy.

    In my experience where there has been a dispute about any costs to be borne by the tenant (which is quite often) this has generally been resolved/agreed quite quickly i.e. within a week. If we now have to go to some sort of arbitration, can’t see this being done more quickly and will involve a lot more work certainly for the landlord and possibly for the tenant.

    As such, reclaiming rightful costs will probably go the same way as when tenants haven’t paid their rent for months. Landlords will settle on just getting their properties back because generally they know they don’t have a chance of getting unpaid rent back again, hence why Section 21 no fault evictions are used rather than Section 8.

    Going to arbitration over reclaims against a vacating tenant’s deposit will turn out to be far more faff than it’s worth for most landlords, so will result in yet more costs the landlord will have to take on the chin.

    When is there going to be a level playing field here, where landlords are protected at least as well as tenants are?…..answer NEVER!

  3. Precisely Eric. No doubt there will also be a restrictive, tight timescale with landlord A expected to transfer to landlord B to go with it as well just adding to the burden.

  4. “Some big questions will need to be answered before this policy becomes a reality, Eric. Amelia you are right, it can take a few days for the actual costs of a deduction to be calculated but note a landlord is already obliged under TDP law to return a deposit ten days after being requested, thereafter the tenant can raise a dispute. The issue comes if the tenant needs to find a deposit for a new deposit. Yes they may well get the deposit back within the ten days, but this can mean a cash flow problem. I cannot predict the outcome of the working group, however it consists of all the current TDP schemes, the landlord and agent associations, a major building society as well as tenant organisations, so the solution will not be cooked up by civil servants or policy wonks. There will no doubt have to be some insurance involved to ensure landlords are protected and yes Geoffrey, timescales and arbitration, although these already exists under the current TDP regime. The industry recognises the challenges of this policy, however like scrapping Section 21 (and the Tenant Fee Ban previously). No 10 has set its mind on doing this, so we should pull together to get it to work. YashamototoBicycleCo, Never say Never!”

  5. My experience of the DPS has not been good. Damage was done to a brand new external door but they claimed it was an accident, we had an agent who we instructed to start the process of claiming compensation but this never happened because they filed a dispute and with all the hassle we just let it go, like the majority’s of landlords, we were too busy with our regular jobs to get involved in disputes. We are a licensed landlord who tend to our tenants every need with efficiency and speed but it is definitely a one way process, our property is our retirement fund but the thought of not having a fixed term, and being unable to get our property back fills us with dread, my friend has just sold her rental and with the abolition of section 21, we will do the same.


Please enter your comment!
Please enter your name here