Why It's Time for a Single Government-Run Tenancy Deposit Scheme

If you've ever rented a home, you know the drill: you hand over a deposit, cross your fingers, and hope that when you move out, you get it back without a battle. Landlords must protect your deposit in one of three private schemes operated by MyDeposits, the Tenancy Deposit Scheme (TDS), or the Deposit Protection Service (DPS). On paper, this sounds like a solid system. In reality, it's a fragmented, needlessly complicated mess.

So, what if we scrapped all three and replaced them with one simple, government-run scheme? A centralised system could cut through the confusion, make enforcement easier, and—most importantly—ensure that tenants and landlords alike are treated fairly.

The Problem With the Current System

Right now, the deposit protection setup is like a lottery. The scheme your landlord chooses dictates the rules you have to follow if there's a dispute. Each has different processes, different fees, and different levels of responsiveness. That’s confusing for tenants, letting agents and landlords alike and it makes enforcement a nightmare. Councils and tenant advocacy groups constantly report cases where deposits have “gone missing” or aren’t protected at all. A single, government-run scheme would put an end to these inconsistencies.

Why One Scheme Makes More Sense
 

1. It Would Be Easier for Everyone

No more tenants having to check multiple websites to figure out where their deposit is being held. No more landlords struggling with different rules, processes, and potential delays depending on which scheme they chose. A single, standardised process would mean fewer headaches for everyone—tenants would have clarity, and landlords would have a streamlined system that reduces admin and ensures compliance is straightforward.

2. It Could Be Linked to a Landlord Register

There’s growing momentum behind the idea of a national landlord register, something many housing organisations, including Shelter and Generation Rent, have been pushing for. If every landlord had to register their properties, linking it to a central deposit scheme would make tracking compliance effortless. If your landlord hasn’t protected your deposit, councils would be able to spot it instantly.

3. It Would Cut Costs

Let’s be honest: the three existing schemes aren’t running out of the kindness of their hearts. They’re private companies that need to turn a profit. A government-run scheme, operating on a not-for-profit basis, could bring down costs and ensure tenants aren’t losing out to unnecessary fees.

4. It Would Make Dispute Resolution Fairer

Right now, disputes are handled differently depending on which scheme your landlord chose. That leads to inconsistent decisions, frustration, and, in some cases, tenants simply giving up on getting their money back. A single system would mean clear, standardised rules for everyone.

5. Stronger Enforcement

Non-compliance is a huge issue. Some landlords simply don’t protect deposits at all, banking on tenants not knowing their rights or not wanting to go through the hassle of a legal challenge. With a single, central database, it would be much easier to catch those who are breaking the law and hold them accountable.

The Pushback: What Are the Challenges?

Of course, not everyone would be thrilled with this idea. The companies running the current deposit schemes would fight tooth and nail to keep their market share. They’d argue that competition keeps standards high—but in reality, tenants and landlords just end up lost in a maze of different rules and procedures.

There’s also the question of whether the government could run a system like this efficiently. We’ve all seen public services struggle with underfunding and delays, so there would need to be serious investment to make sure deposits are processed quickly and disputes are handled fairly.

Then there’s the transition issue. Moving millions of deposits from private schemes into a new government-run system wouldn’t be easy. But with a phased approach, clear legal guidance, and proper funding, it could be done.

A Fairer Future for Renters and Landlords

The rental sector is crying out for reform, and deposit protection is just one piece of the puzzle. The Renters' Rights Bill is already on the table, and this could be the perfect opportunity to push for a fairer, more transparent system.

A single government-run deposit scheme wouldn’t just benefit tenants—it would make life easier for landlords, councils, and enforcement bodies too. It’s simpler. It’s fairer. And frankly, it’s long overdue.

So, what do you think? Would a single deposit scheme make renting easier?