Tenant Deposit Scheme

From October 2006 any landlord who holds a monetary deposit must safeguard that deposit with a tenancy deposit scheme. The aim of this is to remove the risk of misappropriation of tenant’s deposits by landlords and lettings agents.

Furthermore all schemes must provide for alternative dispute resolution so that parties can resolve disputes without resorting to the courts.

All deposits held by SIPS are currently held in a protected client account as stakeholder, both on behalf of the landlord and the tenant. Such monies are protected under the Client Money Protection facility provided by The National Association of Estate Agents.

Once the final legislation is clearer SIPS will make appropriate adjustments to its current protection to ensure compliance.

Additionally, SIPS intends to offer a tenants deposit facility to unauthorised agents and landlords in which they can place tenants deposits and satisfy their legal obligations under the Tenants Deposit Scheme.