Tenancy Deposit Protection

Section 213 of the Housing Act 2004 requires any tenancy deposit paid in connection with an assured shorthold tenancy to be dealt with, from the time it is received, in accordance with an authorised tenancy deposit scheme. Where a landlord receives such a deposit, they must comply with the scheme's 'initial requirements' within 30 days of receiving it.

In practice, a tenant's deposit under an assured shorthold tenancy that started after 6 April 2007 must be registered with one of the government-approved schemes; the deposit is returned once the tenant meets the terms of the tenancy, does not damage the property, and pays rent and bills as agreed. A landlord must use a protection scheme even where the deposit is paid by a third party, such as a rent deposit scheme or the tenant's parents.