Safe as houses

23 Feb 2010

Mandatory protection of residential shorthold tenants’ deposits was introduced by the Housing Act 2004 at sections 212-215 in one of three government-approved schemes. Two of these schemes, namely the TDS and MyDeposits, were insurance-based, the other – the DPS – was a custodial scheme.

The new law also provided that where a landlord failed to comply with the requirements of the Act the courts would have the power to order the return of the whole deposit back to the tenants along with compensation from the landlord to the tenant of three times the amount of the deposit.

There has been much litigation in the lower courts over the precise interpretation of the Act, as well as many thousands of adjudications dealt with by the...

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