Tenancy Deposit Schemes - the Facts
Under the revised Housing Act 2004, the government is introducing mandatory, universal tenancy deposit protection. Tenancy Deposit Protection will apply to all assured shorthold tenancies in England and Wales where a deposit is taken.
Under the Housing Act 2004, it is not mandatory to take a deposit. A landlord can make the decision not to take a deposit to avoid the scheme, but in doing should be aware that should the tenant damage the property or not pay the last month’s rent recovery of these losses can only be made through the county court.
The landlord/agent, not the tenant, will have the option to choose whether to safeguard the deposit in the custodial or insurance-based scheme.