The Tenancy Deposit Scheme

December 2006

The Tenancy Deposit Scheme (TDS) will apply to all assured short hold tenancies where a deposit is taken after April 6 2007. Further details of the schemes will be available from the providers in late January 2007, explaining exactly how their schemes will operate, and how landlords can register to join their schemes to protect deposits.

Further information has been received from LACORS in relation to the TDS as follows: 

Tenancy deposit protection / Tenancy deposit schemes

LACORS would like to advise that the scheme providers for the tenancy deposit protection schemes have been announced by the Department for Communities and Local Government (DCLG). The Government has awarded contracts to three companies to run tenancy deposit protection schemes from 6 April 2007:

• Computershare Investor Services plc will run the single custodial deposit scheme, with the Chartered Institute of Arbitrators providing the Alternative Dispute Resolution (ADR) service. 
• The Dispute Service Limited will run an insurance-based scheme directed primarily at letting agents. It will also run the scheme’s ADR service. 
• Tenancy Deposit Solutions Limited 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.

The custodial scheme run by Computershare Investor Services will be free to use for tenants & landlords . The scheme will be funded by the surplus from the interest generated on the pool of deposits, with interest also being paid to tenants.

The two insurance based schemes, run by The Dispute Service Ltd and the National Landlords Association, will be funded through a fee paid by landlords or agents (the fee level should be known in early January 2007) The service will be free to tenants.

All three schemes will offer alternative dispute resolution services which will be free to use (for both landlord and tenant).

For more information on Computershare  visit, computershare.com, and on The Dispute Service Ltd visit, tds.gb.com,  Hamilton Fraser Insurance is a trading name of FIS plc , an established insurance broker that is authorised and regulated by the Financial Services Authority and for more information on Hamilton Fraser Ins. visit mydeposits.co.uk

For information on the Tenancy Deposit Protection go to communities.gov.uk/tenancy deposit which will be updated as more information becomes available.

Licensing Services Team (HMO's),
Neighbourhoods & Housing Department,
Environmental Health Services,
4th Floor (West),
Merrion House,
110 Merrion Centre,
Leeds,
LS2 8BB.

(Tel: 0113 247 6248)

"Creating better neighbourhoods & confident communities"