A new tenancy deposit scheme is to be formally launched next week safeguarding tenant's deposits and resolving disputes.

The launch is to be hosted by the Royal Institution of Chartered Surveyors (RICS) and will be chaired by Jeremy Leaf FRICS, chairman of the residential property faculty at RICS.

It is claimed that over 20% of residential tenants have experienced disputes with landlords for withholding their deposits without good reason and a deposit scheme is called for in the Housing Bill.

The new Tenancy Deposit Scheme for Regulated Agents scheme (TDSRA) has been developed to ensure that tenancy deposits are protected and any disputes regarding their return are resolved quickly, fairly and inexpensively.

Association of Residential Letting Agents (ARLA) implemented the Tenancy Deposit Scheme for their members on the 1st May. Royal Institution of Chartered Surveyors (RICS) supports the scheme.

The scheme instructs that neither landlords nor agent is able to hold on to the deposit during a tenancy unless they are part of an approved deposit protection scheme.

The scheme is supported by ARLA and the NAEA (National Association of Estate Agents).

RICS supports TDSRA and has been working closely with government legislation, to provide better-regulated services in all areas of the residential housing market.

Key points

• The service is free to tenants and the new scheme ensures tenancy deposits are securely held and disputes about their return are resolved quickly, inexpensively and fairly.
• Deposits held by regulated agents are protected during tenancy. Deposits are then returned to the tenant if they have met the terms of the tenancy agreement.
• When disputes about the deposit cannot be resolved they are referred to the Independent Case Examiner who will deal with it quickly and impartially.
• The regulated agent will transfer the deposit to the Dispute Service who will pay-out to the parties, based on the Independent Case Examiner’s decision.
• If agent fails to transfer deposit within the set timescale, the Independent Case Examiner will draw on the fund to pay deposit. The relevant approved body will refill the fund and take disciplinary action against the agent concerned, to recover the money.