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Tenancy Deposit Protection

The legal requirement under the Housing Act 2004 sections 212-215 for landlords to protect tenant deposits in one of three government-authorised schemes (TDS, MyDeposits, DPS) within 30 days of receipt. Failure invalidates Section 21 and gives the tenant a court claim for 1-3 times the deposit amount.

The landlord must give the tenant 'prescribed information' about the scheme within 30 days. Disputes about returning the deposit at end of tenancy are resolved by the scheme's free Alternative Dispute Resolution (ADR). The tenant can sue in the County Court for the penalty (1-3x deposit at the court's discretion) if protection fails, and can claim the deposit back. Tenant Fees Act 2019 caps the deposit at 5 weeks' rent (6 weeks if annual rent over £50,000).

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