We hold the deposit during the tenancy in a dedicated deposit account.

If there is no dispute about the return of the deposit at the
end of the tenancy, we return the deposit to the tenant without delay, less any deductions agreed by all parties. In the event of a dispute, we provide the deposit to the Dispute Service Ltd who appoint an impartial adjudicator to make a binding decision.

The tenant (or the person who paid the deposit) can take the landlord or agent to court if we do not comply. The court can order the landlord or agent to protect the deposit or repay it to the tenant. The court can also order the landlord or agent to pay the tenant compensation of between one and three times the deposit’s value.

A landlord who has not correctly protected a deposit cannot serve a notice to end the tenancy and regain possession of it under section 21 of the Housing Act 1988. The landlord can only serve such a ‘section 21 notice’ after the deposit has been repaid or after any court case about the deposit has ended.

A landlord who has not given the tenant prescribed information within 30 days must not issue a section 21 notice until the prescribed information has been given. If this takes place more than 30 days after the landlord or agent received the deposit, the tenant can still apply to court for compensation of between one and three times the deposit’s value.