The Government's Tenancy Deposit Scheme (TDS) came into force on 6 April 2007. From this date all deposits taken by landlords for Assured Shorthold Tenancies (AST) in England and Wales must now, by law, be protected by a tenancy deposit protection scheme. Whilst it is not law for a deposit to actually be taken, whenever one is taken, tenants are to be advised of the details of the scheme selected by the landlord (or agent) when signing a new tenancy agreement.

At the end of the tenancy, if a dispute arises about allocation of a deposit that cannot be resolved, the scheme refers the dispute to its dispute resolution service. An independent adjudicator examines the facts and determines how the deposit should be allocated. An Inventory and record of the condition of the fabric and content of the building at the beginning and end of a tenancy is central to this process.

There are many examples on the website of the TDS http://www.thedisputeservice.co.uk under 'case studies' which demonstrate how their decision was based on the information, or lack of information, contained in the inventory and check in documentation, and the importance of why inventories should be prepared independently.