Tenants Protected Under New Deposit Schemes

Disputes between landlords and tenants over deposits could become a thing of the past in Northern Ireland, as a result of new regulations.

Tenancy Deposit Schemes are to come into force on 1 April, under provisions set up by the Department of Social Development.

Welcoming the new law, Social Development Minister Nelson McCausland said: "Tenancy deposit schemes have been available in Great Britain for a number of years and I am delighted that I can now offer this to Northern Ireland tenants, giving them the same protections as others in the United Kingdom.

"People living in the private rented sector have frequently experienced difficulty getting their tenancy deposit repaid, even when they are entitled to it. These new schemes will now remove this problem as all tenancy deposits received by landlords from 1 April 2013 will be protected. It will provide assurances for both tenants and landlords alike ensuring long drawn out legal proceedings are not required."

Two schemes are available to tenants:

Custodial Schemes – these will require landlords to hand over deposits to the scheme for safe keeping. The tenant or landlord can then ask for the deposit to be repaid at the end of the tenancy.

Should any disagreement surface, the scheme will hold onto the money until an agreement has been reached.

Insurance Schemes – landlords may hold onto deposits and pay a membership fee to the scheme. The landlord then repays the deposit at the end of the tenancy. If there is a disagreement, the landlord will give the disputed amount to the scheme until the disagreement has been sorted out.

Four organisations, Capita, Letting Protection Service (LPS), My Deposits and The Dispute Service (TDS) were appointed as administrators by Minister for Minister McCausland earlier this year.

"The four administrators have been holding workshops and information sessions throughout Northern Ireland advising landlords of the new schemes," the Minister said.

"I welcome this approach and landlords continued involvement as the schemes become operational. These new schemes will encourage a more professional approach to tenancy deposit practice and make the private sector a more desirable option for tenants."

(IT)