Tenancy Deposit Schemes

This Practice note explains Tenancy Deposit Schemes (TDSs), which became compulsory for all residential assured shorthold tenancies (ASTs) created on or after 6 April 2007.

TDSs were created under the Housing Act 2004 and are intended to prevent a landlord from failing to return a tenant's deposit and to ensure a landlord is not left out of pocket when a tenancy expires and a tenant abandons the property.

Note that the Renting Homes (Wales) Act 2016 is intended to reform the legal basis for renting homes in Wales and will replace ASTs by a new standard contract (modelled on ASTs). The Act received Royal Assent on 18 January 2016 and the main provisions will come into force on a date to be appointed by statutory instrument. For more information, see Legal update, Renting Homes (Wales) Bill receives Royal Assent.


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