New rules that, from October 2010, requires landlords to formally protect tenants deposits on tenancies worth between £25,000 and £100,000 a year have been warmly welcomed by the Deposit Protection Service (DPS)…
According to the DPS the change in the law will bring protect a further 15,000 new tenancies under the umbrella of deposit protection.
The original tenancy deposit legislation covered Assured Short hold Tenancies of up to £25,000 because tenancies valued above this were seen as contractual tenancies, where deposits did not need to be protected.
Who are the DPS?
The Deposit Protection Service (The DPS) is open to all landlords and letting agents, and is the only scheme that is free to use.
The DPS is secured with UK approved banks, so for safe, secure and straightforward deposit protection and provides landlords. The DPS is the only Government-authorised custodial scheme that is free to use.
However, the DPS believes this left some groups vulnerable as director, Kevin Firth, explains: “While it is natural to think of a high value tenancy and conclude that we are in the realms of the rich and successful, often the opposite is true.”
He adds: “Students, for example, often group up and move into large houses, paying a combined rent that could easily exceeds £25,000 PA.



