Letting Protection Service Northern Ireland approved to operate new government deposti protection schemes

The recent approval of these schemes comes in response to The Tenancy Deposit Schemes Regulations (Northern Ireland) 2012, which came into force on the 1st November 2012 and were set up to ensure good practice in deposit handling. The schemes will provide benefits for both landlords and tenants including free access to dispute resolution services and improved professionalism in the private rented sector.

The LPS NI has been approved to run both a custodial scheme and an insured scheme as set out under the regulations. Under a custodial scheme, landlords and letting agents submit deposits directly to The LPS NI to protect until the end of the tenancy, at which time either party will be able to start the deposit repayment process. This custodial scheme will be free to use for all and will launch on April 1. Further details about the insured scheme will be released soon.

The LPS NI is run by the same operating company that runs The Deposit Protection Service (The DPS) in England and Wales and The Letting Protection Service Scotland (The LPS Scotland). The DPS is the first scheme in England and Wales to be approved to run both types of deposit protection options¹. The LPS Scotland was the first scheme to be approved by the Scottish Government and it launched as a custodial deposit protection scheme in July 2012.

Kevin Firth, Director of The LPS NI commented: “We are delighted to be approved by the Department for Social Development in Northern Ireland to operate two tenancy deposit protection schemes in Northern Ireland. I would encourage letting agents and landlords to ensure that they fully understand the implications of these new regulations and the benefits of participating in a tenancy deposit protection scheme.”