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The government is now consulting on proposals on how statutory Tenancy Deposit Protection will operate from October 2006.
The provisions, among the measures included in the Housing Act 2004, will offer protection for nearly 1.5m assured shorthold tenants and an estimated £768m of tenancy deposits, currently held in England and Wales.
The powers in the Act relating to Tenancy Deposit Schemes do not come into force until commenced by secondary legislation, hence the consultation period.
The consultation, Tenancy Deposit Protection: consultation on secondary legislation, sets out the rights and responsibilities of both tenants and landlords at the beginning of a tenancy where a deposit is taken.
The Housing Act requires all landlords or agents, taking a deposit to be safeguarded by a Tenancy Deposit Scheme (TDS), to provide 'prescribed' information to a tenant. The consultation is seeking views on the content of that information.
The Government announced on 5 August 2005 the start of the procurement exercise to seek potential suppliers to run Tenancy Deposit Schemes.
The consultation closes on 1 February 2006 and the consultation paper can be downloaded at: www.odpm.gov.uk/index.asp?id=1161928
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