On the 6th April 2007 new rules were introduced in England and Wales about the holding of rental deposits in the most popular form of tenancy - AST - Assured Shorthold Tenancies.Bascically deposits had to be registered and this was something that had been done in Australia for a while
So a new scheme was set up to protect tenancy deposits from being misappropriated and offers a free dispute resolution service in the event that landlords and tenants cannot agree over how the deposit is to be apportioned.
There are different ways to do this. First of all whereby the money lodged with a Government approved company- The Deposit Protection Service (The DPS) -It does not cost anything and is run by Computershare Operational Services.
Alternatively Landlords or Agents can use one of two insurance based schemes - My Deposits and The Tenancy Deposit Scheme (TDS).This is run by The Dispute Service.
My Deposits is a partnership between the National Landlords Association (NLA)and Hamilton Fraser Insurance. It has become very popular for private landlords, however with the insurance based schemes you do have to pay for each registration and re-registration and although the landlord ar agent holds the deposit, it can be more cost effective to use the scheme whereby the deposit is held by the Government approved organisation.
In July 2012 these new deposit rules were introduced by the Scottish Government. Again there are three choices of companies to use. The Letting Protection Service Scotland (LPS) again run by Computershare Investor Services PLC, My Deposits Scotland - part of My Deposits for England and Wales and SafeDeposits Scotland - who hold the deposit as well. Some of their key services are provided by The Dispute Service.
Now from the 1st April 2013 it comes to Northern Ireland. There are a choice of four providers.
The Letting Protection Service Northern Ireland (The LPS Northern Ireland), run by Computershare Investor Services PLC which also operates The Deposit Protection Service (The DPS), in England and Wales and The Letting Protection Service Scotland (The LPS Scotland). According to their website they will also be starting an insurance based scheme at a later stage.
My deposits Northern Ireland which is run by the same organisation as My deposits in England and Wales and My deposits Scotland. This is an insurance based scheme.
Tenancy Deposit Scheme Northern Ireland is a Belfast-based company which protects tenancy deposits for private tenancies and resolves disputes over their allocation in the event the landlord and tenant cannot agree. It is part of The Tenancy Deposit Scheme (TDS), that is run by The Dispute Service in England and Wales.
Capita - Capita plc is the UK's leading provider of business process management are launching its new Tenancy Deposit Protection schemes in Northern Ireland and England and Wales on the 1st April 2013.
If you require further information go to this page at the Department of Social Development.
Finally if you are a Landlord or Tenant in Northern Ireland are looking for insurance pay a visit to the "Landlord and Tenant Insurance" page at Irish Property Insurance Here
We would like to receive your comments regarding thes new tenancy deposit regulations, so please contact us via this site.