The Deposit Protection Service (DPS) has welcomed the government’s move to contractually oblige landlords to formally protect deposits on tenancies worth between £25,000 and £100,000 a year.

Higher rate tenancies had previously not been included under tenancy deposit legislation, which only covers Assured Shorthold Tenancies up to £25,000. Tenancies valued higher than this were seen as contractual tenancies and deposits did not need to be protected.

But this situation, according to the DPS, left some groups such as students or large house-shares vulnerable.

Kevin Firth, Director of the DPS, said: “While it is natural to think of a high value tenancy and conclude that we are in the realms of the rich and successful