About Tenancy Deposit Claims

Tenancy Deposit Protection Schemes (TDP) were introduced in 2007 to ensure that tenants’ deposits were protected from unscrupulous landlords who unfairly withheld part or all of the deposit.

The introduction of the scheme was hailed as a significant breakthrough in denying dishonest landlords from mis-using deposits as part of their personal income and protecting the fund during the tenancy. In addition to protecting the deposit, other rules were introduced to provide a faster means of dealing with any dispute between the tenant and the landlord.

These new rules were not solely to protect the fund but also to persuade landlords to put in place clear and proper agreements in place detailing the condition of the property as the start and end of the tenancy including specific inventories and contracts.

The rules applying In England & Wales specify 3 types of scheme providers:

• The Tenancy Deposit Scheme
• The Deposit Protection Service
• My Deposits

Who has to comply with the Scheme?

All landlords who take deposits for Assured Shorthold Tenancy Agreements MUST place this money into one of the Government backed schemes within 30 days.

Landlords Obligations

It is a compulsory legal requirement to put a tenancy deposit into a government backed scheme and tell their tenants which scheme is being used. It is also compulsory for landlords to return deposits or balance within 10 days of reaching an agreement with the tenant how much will be returned.

It is also a compulsory legal requirement to provide a copy of the Deposit Protection Certificate to the tenant (or 3rd party, a parent for example, if they paid the deposit) within 30 days of receiving the deposit.

If the landlord does not provide the Deposit Protection Certificate within 30 days it is reasonably certain that a claim for compensation from your landlord will succeed.

Failure of Landlord to protect Deposits

Landlords or their letting agents who fail to protect the tenancy deposit may have to pay all or some of these monies back together with a compensatory payment. They may also face significant financial penalties and lose their right to evict tenants pursuant to a Section 21 Notice.

Can I claim?

There are specific time limits for bringing a claim and if, over the past 6 years, you have experienced any or all of the issues below, you may have a compensation claim.

• Your landlord failed to supply the Deposit Scheme Protection Certificate within 30 days.
• Your landlord failed to return your deposit when your tenancy completed.
• You know your landlord failed to protect your deposit.
• You are not sure whether your landlord protected your deposit.

What are the time limits?

The normal time limit for bringing a claim for breach of contract (Tenancy Agreement) is six years from the date when the landlord should have returned the deposit. The precise date can be determined by reviewing the Tenancy Agreement and / or the Deposit Scheme.

How long will the claim take?

It is difficult to be precise because it very much depends upon the response from the landlord and, more importantly, whether court action is required. In our experience, the vast majority of claims are resolved within 3 to 4 months from sending the initial letter.

How much is my claim worth?

The rules state that you may be entitled to between 1 to 3 times the amount of deposit you paid to the landlord. In the case of multiple breaches this may increase significantly. So, for example, if the original deposit was not protected and the tenancy was renewed for a second or third time these would count as two or three separate breaches of the law and the compensation payable would be applied twice or three times.

How much will it cost?

We do not charge any fees upfront but undertake this work on a Conditional Fee Agreement (no win, no fee) basis. We charge on a percentage basis which is deducted from the compensation you are awarded plus value-added tax (VAT). Full details are specified with you at the outset and are contained within our Terms of Business.