Tenancy Deposit Scheme Supports Landlords and Tenants with Dispute Resolution

The Tenancy Deposit Scheme (TDS), the UK’s longest-running tenancy deposit protection scheme, has announced significant progress in supporting both landlords and tenants. According to its 2024/25 Social Impact report, TDS has protected over £2.45 billion in deposits and resolved more than 33,000 disputes since its inception. This achievement demonstrates the scheme’s role in providing a reliable framework for deposit protection and dispute resolution within the private rented sector.

Reducing Court Demand and Delivering Fair Outcomes

One of the key benefits highlighted by TDS is its early dispute resolution service, which successfully settled 42% of disputes without the need for formal adjudication. This approach not only saves time and reduces stress for both landlords and tenants but also alleviates pressure on the courts, generating wider savings for the public purse. The scheme’s Tenancy Redress Service (TRS) further supports this goal by offering free, impartial mediation to resolve mid-tenancy issues.

Between April 2024 and January 2025, the TRS received 169 enquiries, with the majority coming from tenants (102). This indicates a growing awareness and utilisation of mediation services as an alternative to legal proceedings, which can be costly and time-consuming.

Context: Deposit Protection Under the Renters’ Rights Act

The TDS’s work is particularly pertinent given recent government clarifications under the Renters’ Rights Act. Landlords must now prove that deposits are protected within a government-approved scheme when seeking possession under most grounds. This legal requirement reinforces the importance of using recognised deposit protection schemes like TDS to avoid complications in possession claims.

Training and Raising Standards in the Private Rented Sector

Beyond dispute resolution, TDS has also launched the TDS Academy, which provides education and training to landlords and letting agents. The academy has already delivered over 1,000 hours of training aimed at raising standards across the private rented sector. This initiative supports landlords and agents in understanding their legal obligations and best practices, ultimately benefiting tenants through improved property management.

Leadership Perspective on Social Impact

Steve Harriott, Chief Executive of TDS, emphasised the broader social impact of the scheme: “Our work touches millions of people every year. But social impact is not only about the numbers. It is about reducing stress, creating financial security, giving people access to secure housing, and raising standards across the property sector.” He added, “We’re proud that initiatives from early dispute resolution to outreach programmes are making life easier for our customers and communities.”

What This Means for UK Landlords

For landlords, the TDS’s services offer practical benefits. Protecting deposits through a government-approved scheme is now a legal necessity under the Renters’ Rights Act, and using TDS can help ensure compliance. Early dispute resolution and mediation services reduce the likelihood of costly court cases and lengthy delays, saving landlords time and resources. Additionally, the training provided by the TDS Academy can help landlords and letting agents maintain high standards and stay informed about their responsibilities.

Conclusion

The Tenancy Deposit Scheme continues to play a vital role in the UK private rented sector by safeguarding billions in deposits, resolving disputes efficiently, and supporting landlords and tenants through education and mediation. Its efforts contribute to a fairer, more efficient rental market and help landlords meet their legal obligations under evolving legislation.

Suggested internal link anchors

• tenancy deposit protection UK
• dispute resolution service
• Renters’ Rights Act deposit rules
• early dispute resolution
• Tenancy Redress Service
• deposit protection schemes
• landlord training and education
• private rented sector standards
• possession grounds under Renters’ Rights Act
• mediation for landlords and tenants

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/