Deposit Protection Scheme

Overview

Your landlord must put your deposit in a government-backed tenancy deposit scheme (TDP) if you rent your home on an assured shorthold tenancy that started after 6 April 2007. In England and Wales your deposit can be registered with:

 

1. Deposit Protection Service
2. MyDeposits – including deposits that were held by Capita
3. Tenancy Deposit Scheme

 

If you don’t rent your home on an assured shorthold tenancy, your landlord can accept valuable items (for example a car or watch) as a deposit instead of money. The items won’t be protected by a scheme.

Deposit protection

Reserving a Property (England, Wales and Northern Ireland)

Should you make an offer on a property and it be accepted by the Landlord, you will be asked to pay a holding deposit equivalent to one weeks agreed rent. This will remove the property from the market whilst reference checks and preparation of the tenancy agreement is undertaken. The holding deposit is taken as a financial commitment from you, the prospective tenant to proceed towards entering into the agreement.

Refunding a Holding Deposit

Should you proceed to enter into a tenancy agreement with the Landlord, the holding deposit will be paid towards the balances of your first month’s rent.

 

Should the Landlord choose to withdraw from entering into the agreement, this money will be refunded to you. The holding deposit paid will remain on account for the duration of your application.

Retaining a Holding Deposit

A Holding Deposit will be retained where a prospective tenant;

  • Provides false or misleading information which is reasonable considered when deciding a let of a property.
  • Fails a right to rent check.
  • Withdraws from entering into an agreement for the property.
  • Fails to take reasonable steps to enter into a tenancy agreement.

Should any of the above occur, Homelink retains the right to deduct its reasonable expenses on a case by case basis which may include the administration, referencing or any other costs incurred.

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