From 6 April 2007, landlords entering into new tenancy agreements will be required to place any deposit with a Government authorised scheme, which will safeguard the money and offer independent adjudication in the event of any dispute. Tenants who have kept their rented property in good condition can be confident that they will not have all or part of their deposit withheld on spurious grounds, a common complaint currently made by tenants.
The existence of the alternative dispute resolution service (ADR
) will also encourage tenants and landlords to have in place, from the outset, clear agreement on the condition of the property through use of inventories, – thus ensuring that landlords are also protected.
will apply to all assured shorthold
) in England and Wales, where a deposit is taken. Virtually all new contracts to let a property are ASTs
. A contract that is an AST
will be clearly marked as one. The TDP
will add to the measures set out in the Housing Act 2004 to drive up standards in the private rented sector, including licensing multiple occupancy homes and new safety rules.
For further information visit the direct.gov website