If you take a deposit from a tenant for an Assured Shorthold Tenancy, you must safeguard it in an approved tenancy deposit scheme.
Landlords must tell tenants days within 14 which scheme they are using, and pay the deposit money into it. At the end of the tenancy, the tenant should get their money back within ten days provided there is no dispute.
The deposit must be in the form of money.
Landlords who are found to be in breach of these provisions will not be able to issue section 21 notices, and may have to pay compensation to the tenant of three times the deposit.
The landlord/agent must submit the deposit to the operators of their scheme when requested.