The government is set to include a new tenancy deposit scheme in the Housing Bill following a concerted campaign from housing charities and associations of private landlords.
The move would safeguard the deposits of private tenants. Charity Shelter estimates that 127,000 private tenants lose up to £65m in deposits unjustly held by landlords each year.

Matthew Green, Liberal Democrat shadow ODPM spokesman, said: "We now strongly expect the government to introduce something on this when the bill passes to the Lords, something we would very much welcome."

A spokesman for Shelter said: "We think there's every chance the government will move on this before the summer – hopefully in the Housing Bill."

Sources close to negotiations say civil servants have already been drafting amendments to the legislation, which would take the form of a simple enabling clause.

Details on how it would work would be left to secondary legislation. But it is thought the government will encourage private firms to run deposit bond schemes, while itself running a default government deposit bank for landlords that choose not to sign up to the private schemes.

It is also believed that the Liberal Democrats will drop their opposition to home information packs, also in the bill, if the government brings in amendments on tenancy deposits and leasing of empty homes.

Housing minister Keith Hill said:"It's very plain we'd like to do something on this."

Source

Housing Today