Milestone Estate Agents
tenancy deposit scheme

Tenancy Deposit Protection Scheme

Milestone Estate Agents in Willesden, London

The Tenancy Deposit Protection Scheme (TDP) is a government backed initiative that was introduced to protect tenants' deposits and create a system that enables any disputes at the end of a tenancy to be resolved fairly and swiftly. There are three approved schemes which exist to ensure the safe keeping of monies paid by the tenant to the landlord thus providing a guarantee that a tenant will be reimbursed with their deposit when their rental agreement ends provided there has been no breach of the tenancy agreement. Since April 2007 it is a legal requisite for landlords to use a Tenancy Deposit Protection Scheme if they have let a property on an assured shorthold agreement.

There are three approved schemes:-

  • Deposit Protection Service (DPS)
  • MyDeposits
  • Tenancy Deposit Scheme (TDS)

There are also two types of Tenancy Deposit Protection Scheme - custodial and insurance based.  Under the custodial scheme the deposit is paid into a bank account by the landlord or management agency and will be retained there until the tenancy comes to an end.

We use the Tenancy Deposit Scheme (TDS) which is an insurance based scheme.  Insurance based schemes allow the landlord or managing agent to retain the deposit themselves and instead pay insurance premiums into the scheme which in turn provides protection in the event of a dispute.  This means that if the landlord does not pay the tenant what they are owed at the end of the tenancy he/she will be reimbursed from the scheme directly and the insurer will then have to get the money back from the landlord.   Only members of an approved professional body are eligible to join this type of scheme and there is a fee applicable which is paid by the landlord.

Return of a deposit

At the end of a tenancy if both landlord and tenant agree on the amount of deposit to be paid back this amount should be received within ten days and will be paid by the landlord by either cash or cheque.

The landlord is not allowed to keep all or part of your deposit if they cannot show that they have lost money through the fault of the tenant.  This could be because something was damaged or lost or there is rent outstanding.  Tenants are entitled to ask their landlord or agency for a breakdown of any deductions being taken from the deposit. The inventory check done at the beginning of the tenancy will be used to ascertain if there are any monies owed to the landlord. Landlords’ are not allowed to keep money for general wear and tear.


In the event that an agreement is not reached the TDS ensures that a free service will be used to resolve disputes.  Any dispute will be dealt with fairly by the Independent Case Examiner (ICE) who will make a quick decision and the deposit will be paid out without unnecessary delay.

Benefits of using this scheme for landlords:

  • Disputes can be resolved without the need to go to a court making the process less complicated, worrying and time-consuming
  • Landlords will be able to re-let the property whilst adjudication is taking place
  • There is a guaranteed return of any losses made by landlord if found in their favour

Benefits of using the scheme for tenants

  • In the event there are no disputes the scheme ensures the tenant will  get a swift return of their deposit
  • Disputes can be resolved without the need to go to a court making the process less complicated, worrying  and time-consuming
  • Provides a guaranteed return of any losses made by tenant if found in their favour
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