Painsmith Landlord and Tenant Blog

A practitioners landlord and tenant law blog from PainSmith Solicitors

TDS

We have blogged on the issues surrounding the release of Deposits following possession proceedings here. Many of you will be interested to note that the TDS have replied to this blog here.

Filed under: England & Wales, FLW Article, , ,

2 Responses

  1. Rob Hirons says:

    Further to this subject. A reply from CLG on behalf of Grant Shapps.

    20 February 2012

    Mr Rob Hirons
    Director
    Home-Bridge Property Ltd

    Sent by e-mail:
    rob@homebridge.co.uk
    Our Ref: GS/72/003420/12 10

    Dear Mr Hirons

    Thank you for your e-mail of 27 January to Grant Shapps about the Deposit Protection Service (DPS) rules relating to the release of the deposit following a court hearing. Ministers are unable to respond personally to all the correspondence they receive and your e-mail has been passed to me for reply.

    While the DPS is a government authorised scheme, it is not run by the government. Whilst the scheme providers must ensure that their schemes comply with the legislation and the terms of our service concession agreement with them, the detailed arrangements in terms of procedures are up to the scheme providers.

    As you are aware, the DPS rules state that where a dispute goes to court, the DPS will only release the deposit on receipt of a court order directing how much of the deposit is to be paid to the successful claimant. If the court order does not explicitly say that the deposit is to be released to the landlord, DPS will not release it. We discussed this issue with the DPS at one of our regular governance meetings with them and, whilst it is not a requirement set out in the legislation, it is included in their terms and conditions on the advice of their lawyers. Whilst we can understand the frustration this may cause, we are sure you will appreciate that strict safeguards need to be in place to prevent potential abuse of the system by either landlords or tenants.

    This Department monitors the performance of the three approved schemes through monthly Key Performance Indicators and regular governance meetings. We also draw on information provided by our Users’ group which includes landlord and tenant groups. From the overall feedback we receive, Ministers are satisfied that the system generally works well.

    Issues in respect of the way the Courts operate are for the Ministry of Justice who can be contacted by e-mail at: general.queries@justice.gsi.gov.uk

    Yours sincerely

    Treat as signed
    Wendy Armstrong

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