A warning has been issued to landlords who could end up paying back three times a tenant's deposit if they fail to protect money in approved bank accounts.

From April 6, it will be compulsory for a landlord of a new assured shorthold tenancy to pay a tenant's deposit into an authorised tenancy deposit scheme run by an approved scheme administrator.

If they don't, landlords could be liable to pay their tenants up to three times the value of the deposit and may also lose the right to serve notice to recover possession of their property.

David Johnson, of KBL Solicitors in Mawdsley Street, said:"The legislation could have serious ramifications for landlords, but the potential problems are easily avoidable.

"We're advising our clients to make sure they have adhered to the changes in time for the April deadline."

A recent survey by the Association of Residential Letting Agents reported that almost 25 per cent of landlords interviewed were unaware of the TDS legislation and a further 46.2 per cent were unsure what a TDS involved.

Mr Johnson said that TDS has advantages for landlords as well as tenants.

"A TDS means that the deposit is protected and returned to the tenant at the end of the tenancy except to the extent that the landlord has a legitimate claim on it and secondly, disputes are resolved by dispute resolution as opposed to through the courts, which will ultimately save on costs for landlords," he said