The laws will ensure that tenants’ deposits are held by a third party to be returned at the end of the tenancy. Any disputes are resolved through an alternative dispute resolution process.
The tenancy deposit scheme was introduced in England and Wales in April 2007.
Eddie Hooker, chief executive of mydeposits.co.uk, said: “This is a win-win situation for all of those involved in the private rented sector. For tenants, it ensures their rights are protected and, should all go well during the tenancy, they are guaranteed to get their full deposit back.
“Tenancy deposit protection is one of the many things that helps define the good landlord and letting agent and allows tenants to know they are being dealt with professionally.”