The Dispute Service says that its new tenancy deposit protection scheme will offer agents and landlords choice and flexibility.

TDS currently runs an insurance-backed scheme currently protecting over 1.1m deposits.

Yesterday, it was announced that it has been approved by the Department for Communities and Local Government to run a custodial scheme.

TDS says that the two schemes will run side by side. Agents and landlords will be able to use one or both, and easily switch mid-tenancy.

TDS already runs custodial schemes in Northern Ireland and Scotland.

TDS chief executive Steve Harriott said: “We are delighted to extend our established and award winning experience to custodial deposit protection in England and Wales.

“This is a great step forward which will benefit agents, landlords, and tenants, and offer valuable new flexibility to suit the needs of members.

“Until now, agents and landlords in England and Wales have not had a choice of custodial deposit protect schemes and we look forward to offering our alternative award winning service from April 1, 2016.”