SET UP in April of last year, the Tenancy Deposit Scheme (TDS) has safeguarded half a billion pounds in tenants' deposits, proving it has been a big success as it approaches its first anniversary.

Run by The Dispute Service under Government legislation, the TDS requires landlords to register details of the start and end of all new tenancies in a bid to protect deposits and resolve deposit-related disputes quickly and efficiently.

The scheme is designed to protect a deposit throughout a tenancy and ensure its prompt return when it comes to an end.

If, at the end of the tenancy there is a dispute between the landlord and occupant, the matter is referred to the Independent Complaints Examiner (ICE) to be dealt with fairly.

By March 1 - five weeks before the mandatory scheme reaches its first anniversary - the TDS covered nearly 450,000 tenancies, housing approx- imately 700,000 tenants in properties owned by 335,000 landlords, and these figures continue to rise by 7.5 per cent a month.

For incidents in which no agreements can be reached, about how much of the deposit should be returned, the ICE step in and last year alone resolved around 127 disputes a month through Alternative Dispute Resolution.

This figure is more than double that handled under voluntary deposit protection and its predicted to continue rising.

Lawrence Greenberg. Chief executive of The Dispute Service said: "We are very pleased with our success but we are very well aware tenancy deposit protection is a new concept for the public, landlords, tenants and their letting agents."

He added: "We are doing everything we can to make our web-based systems easy to use for agents who are responsible for protecting the rights and money, due to both tenants and landlords."

A web-based education programme was introduced by the TDS last month designed to work as a day-to-day aid for members which can also be used for in-house training programmes for letting agents and corporate landlords.

Lawrence said: "Providing tutorial assistance in this way helps us all.

"It cuts down on erroneous entries, gives staff confidence and frees up the telephone lines for the serious or unusual problems which inevitably arise."

The TDS benefits both parties involved in the process of renting a property.

It relieves landlords of the burden of deposit administration and denies tenants using it as the last months rent.

Tenants can rest assured their deposit is secure and safe in the knowledge it will be returned to them at the end of the living agreement, as long as the property is left in the condition it was found in.

Equally, the TDS is good news for letting agents who can transfer the dispute between landlord and tenant straight to ICE leaving them free to continue with their job without the hassle of resolving the issue.

Having enjoyed a successful first year, the TDS looks set to put both tenants and landlords minds at rest as we continue to see a growth in protection and resolution.