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Tenancy Deposit Scheme
From 6th April 2007 all deposits taken by landlords for Assured Short Hold tenancies in England and Wales must be protected by a Tenancy Deposit Protection Scheme.
The government has awarded contracts to three companies to run tenancy deposit protection schemes.
Computershare Investor Services plc will run the single custodial deposit scheme, with the Chartered Institute of Arbitrators providing the Alternative Dispute Resolution Service (ADR) link to http://www.arbitrators.org/
The Dispute Service will run an insurance based scheme directed primarily at letting agents. It will also run the scheme's ADR service.
Tenancy Deposit Solutions Ltd will run an insurance based scheme, sponsored by the National Landlords Association and administered by Hamilton Fraser Insurance, which will be directed primarily at landlords. The Chartered Institute of Arbitrators will be the principal provider of ADR to the scheme.
Under the Schemes:
- Deposits will be protected during the tenancy.
- Where there is no dispute at the end of the tenancy deposits will be returned to the tenants promptly.
- Where there is a dispute regarding the return of a deposit it will be dealt with by the ADR..
- The ADR will make its decisions as quickly as possible and the deposits will be paid out without unnecessary delay.
It is very important to note that in order to resolve any dispute an impartial Inventory is required as proof of the properties original condition prior to the period of tenancy.
Landlords who fail to comply with the new legislation could be ordered by the courts to pay the tenant 3 times the amount of the deposit as a penalty.
For further information contact: Tenancy Deposit Scheme, Independent Housing Ombudsman Limited, Norman House, 105-109 Strand, London WC2R 0AA. Telephone 020 7379 1754 ombudsman@ihos.org.uk
