What is the Tenancy Deposit Scheme? (Fifth edition)
Revised March 2013
©The Dispute Service Limited 2013
What happens to the deposit at the end of the tenancy?
1.1.22 If there is no dispute about the return of the deposit at the end of the tenancy,
the landlord or agent must pay the deposit to the tenant without delay, less any
deductions that the tenant has agreed.
1.1.23 If there is a dispute about the return of the deposit or about proposed
deductions, the parties should try to reach agreement without delay. Most disputes are
resolved informally in this way. But if the deposit has not been returned to the tenant
within 10 days of the tenant asking for it, any of the parties can ask TDS to resolve the
dispute.
1.1.24
If there is a dispute, what happens to the deposit?
1.1.25 The landlord or agent can make a payment from the deposit if:
both landlord and tenant have agreed; or
the court has ordered the deposit to be paid; or
TDS directs them to send the money to TDS.
1.1.26 Once TDS has been asked to resolve a deposit dispute, the landlord or the
agent must send the disputed amount to TDS. By this time, the landlord or agent should
have paid the tenant any part of the deposit that is not an agreed deduction or in dispute.
1.1.27 If whoever is holding the deposit does not send the disputed deposit amount to
TDS, TDS will take legal action to recover it. This will not delay TDS in resolving the
dispute. If the deposit holder cannot pay the disputed amount, for example because
it has become insolvent, TDS will arrange the adjudication, pay the tenant the
amount awarded by the adjudicator and make a claim to its insurers. The law requires
TDS to guarantee only that the tenant receives the amount they are entitled to.
How are disputes resolved?
1.1.28 The person who wishes to send the dispute to TDS can do this online or by
completing a Dispute Application Form giving details of the dispute, and any
relevant supporting documents.
1.1.29 The deposit holder must then send the disputed amount to TDS. It will copy
the dispute details to the other parties and give them 10 working days to consent to
TDS resolving the dispute, respond to the claim, and send in their evidence.
1.1.30 If all the parties agree to TDS resolving the dispute, TDS will appoint an impartial
adjudicator to make a binding decision, normally within 28 days of receiving the
parties’ consent to resolving the dispute. If landlords and agents do not reply, they are
treated as consenting. In all these cases, the adjudicator will normally make a decision
within 28 days after the deadline for giving evidence.
1.1.31 Within a further 10 days of the adjudicator’s decision, TDS will pay the amount
due to each party.
1.1.32 The adjudicator’s decision will be based only on the evidence sent to TDS – there
will be no hearing or visit to the property.
1.1.33 The adjudicator’s decision is final. There is no right of appeal to TDS or to the
government department in charge of the tenancy deposit protection schemes.