The TDSRA scheme is to resolve deadlocked tenancy disputes over the apportionment and settlement of deposits following the end of a tenancy. When the letting agent is holding the deposit but cannot negotiate a settlement between landlord and tenant, all details of the dispute, along with the deposit money that cannot be settled, will be sent to the Independent Case Examiner for the Scheme. This will then be subject to expert third party adjudication and the apportioning of deposit money.

This breakthrough scheme, which replaces the scheme abandoned by government last summer, went live on May 1st and more than 300 ARLA members are already signed up. ARLA expects that the other two professional bodies; the RICS and the NAEA will join the scheme in the very near future. This is because it will greatly simplify the task of both agent and landlord as well as reassuring tenants that there will always be a fair deal through independent adjudication when they use agents signed up to TDSRA.

Welcoming the Deposit Scheme, Shelter Director Adam Sampson said:

     "The ARLA Scheme will provide greater assurance to private tenants that their money will be held securely and returned speedily and fairly. ARLA's very welcome move needs to be backed by legislation to introduce a statutory default scheme for landlords and agents who fail to follow ARLA's lead in ensuring that the tenancy deposit rip off is ended once and for all."

Outline
Many tenants in the private sector give their landlords a deposit against possible non-payment of rent or damage to property. When a tenancy comes to an end, there is usually no disagreement about the return of the deposit. But sometimes there is, and this can cause much hardship and inconvenience to both the landlord and the tenant.
 
The Tenancy Deposit Scheme for Regulated Agents (TDSRA) has been developed to ensure that the deposits they hold are protected and that disputes about their return are resolved swiftly, inexpensively and impartially.

Under the Scheme: 

• Deposits will be protected during the tenancy 
• Where there is no dispute at the end of the tenancy, deposits will be returned promptly 
• Where there is a dispute about the return of the deposit it will be dealt with fairly by the Independent Complaints Examiner (ICE)

The ICE will make his decision quickly, and the deposit will be paid out without unnecessary delay.

Landlords Grasping The Tenancy Deposit Scheme
Well over two thirds of all landlords surveyed this quarter for the Tenancy Deposit Scheme are now aware that legislation comes into force this autumn. The new legislation is designed to safeguard tenants deposit money and provide adjudication for deposit disputes. The number of landlords who are fully aware of the details of the legislation has risen sharply in just three months, from 16% to 25%.

This is shown in the latest research for The Dispute Service, which operates the existing Tenancy Deposit Scheme, carried out during March and published today.

Under the Housing Act 2004, in less than six months time, the use of a tenancy deposit scheme will be mandatory for all landlords. If a rented property falls within the provisions of the Housing Act - effectively, if the rental value is less than £25,000 a year - landlords and their agents will have to be members of a recognised Tenancy Deposit Scheme.

Now, the latest research shows that only a quarter of all landlords remain completely unaware of the compliance that will be required of them from October 1st this year. In addition to a quarter of all landlords understanding the detail of the legislation, close to half of the remaining landlords, 45.2%, are aware that there is an autumn deadline.

Lawrence Greenberg, Chief Executive of the Tenancy Deposit Scheme, welcomed the latest findings, "With six months still to go we are winning the education battle," he said. "This time last year, we were not expecting to have been able to get so far with the information campaign and to have been able to get the message across to so many landlords in the private rented sector."

Lawrence Greenberg also pointed out that it is very evident that letting agents understand the benefits of the Tenancy Deposit Scheme.

"The system for Alternative Dispute Resolution which helps to do away with protracted argument and court procedures removes unresolvable problems from the agent's desk and puts them where they belong, with an experienced, independent adjudicator."

The Tenancy Deposit Scheme came on-stream two years ago next month, with the backing of the professional bodies active in the private rented sector: ARLA, the Association of Residential Letting Agents, the NAEA, the National Association of Estate Agents and the RICS, the Royal Institution of Chartered Surveyors. It already has well in excess of 1,000 active letting offices in the scheme.

More information for landlords, tenants and letting agents is available at www.tds.gb.com or on 0845 226 7837