Please Note: This Article is 13 years old. This increases the likelihood that some or all of it's content is now outdated.

DCLG News Release 2006/0036, 23 June 2006

Tenancy Deposit Protection (TDP) is another step in the Government’s determination to improve conditions in the private rented sector. The responses to the Government’s Consultation on how the TDP arrangements will operate have been positive, and have given backing to the information requirements to be placed on landlords and tenants at the beginning and end of a tenancy.

The summary of responses, published today by the Department for Communities and Local Government, reflects complex issues and includes concerns expressed by landlords and letting agents about the issue of rent arrears and abandonment of tenancies. The Government has therefore agreed to look at these aspects again.

Housing Minister Baroness Andrews said the Department was committed to working with stakeholders to get the new measures right.

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We are determined to ensure that proposed Tenancy Deposit Schemes do the job that they were intended to do; that is: to protect nearly 1.5 million assured shorthold tenants and an estimated £768m of tenancy deposits currently held in England and Wales. We are therefore giving further consideration to stakeholders’ concerns expressed in the consultative process and we are reviewing the commencement date for the Tenancy Deposit Protection Legislation, which was set for 1 October this year, in that light.

The measures will help drive up standards in the private rented sector, alongside other Housing Act 2004 provisions such as HMO and Selective Licensing, the Housing Health and Safety Rating System and Empty Dwelling Management Orders.

The Government will confirm a commencement date for Tenancy Deposit Protection before Parliament rises in the summer.

Notes to editors
1. The consultation paper, Tenancy Deposit Protection: consultation on secondary legislation was published by the then Office of the Deputy Prime Minister. The consultation paper provides further background information on Tenancy Deposit Protection as well as setting out options for secondary legislation.

2. The consultation paper can be downloaded at:
http://www.communities.gov.uk/index.asp?id=1500987
The website also contains links to other related information, including the Housing Act 2004. The relevant provisions of the Act are contained in Part 6 (Chapter 4) and Schedule 10.

3. Section 213 of the Act provides for regulations to be made prescribing information to be given by landlords to tenants when they receive the deposit from the tenant.

4. The consultation closed on 1 February 2006 and responses were considered with a view to formulating the secondary legislation prescribing this information.

5. The majority of consultation responses from landlord and letting agent representative organisations mentioned rent arrears and abandonment as a major issue at the end of a tenancy. The concern arises where a deposit is safeguarded by a custodial scheme and one party cannot obtain the agreement of the other as to how to divide up the deposit, going to the courts would be the only option to have the deposit returned/released by the custodial scheme administrator.  However, this does not put the party who is genuinely entitled to the deposit in any better position than a tenant under the existing system. Landlords and agents wish to see the party wishing to make a claim on the deposit being able to do so on their own. If these concerns are to be alleviated, an Order will need to be made to amend some of the provisions of Schedule 10 to the Act.

An updated list of more frequently asked questions is on the DCLG website at:
http://www.communities.gov.uk/index.asp?id=1163530

Media Enquiries: 020 7944 3049
Out of Hours: 020 7944 5945
E-mail: press.office@communities.gsi.gov.uk
Public Enquiries: 020 7944 4400
DCLG website: http://www.communities.gov.uk/

Please Note: This Article is 13 years old. This increases the likelihood that some or all of it's content is now outdated.
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