Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, if he will introduce an obligatory tenancy deposit scheme for commercial premises with a rateable value of £51,000 or less.

The terms on whether and how a deposit will be paid by the tenants of a commercial property and how this will be retained by the landlord should be included within the commercial lease agreement agreed by both parties. It may be useful to include in this a rent deposit deed setting out how the landlord will secure the deposit.

Under the tenancy deposit protection legislation introduced in the Housing Act 2004, all landlords letting on residential assured shorthold tenancies are required to protect their tenants' deposits in a government-approved scheme within 30 days of taking the deposit. We do not currently have any plans to require the use of a tenancy deposit scheme for commercial tenancies.

The letting agent or property manager should arbitrate any disputes between the landlord or tenant in the first instance. Since 1 October 2014, it has been a legal requirement for lettings agents and property managers in England to join one of two government-approved redress schemes (the Property Ombudsman or the Property Redress Scheme) and a complaint can be made to the relevant redress scheme should the letting agent or property manager be unable to arbitrate the dispute.