The contracts under which the tenancy deposit schemes operate are designed to ensure that they continue to be financially viable. Those contracts are commercially sensitive. But I can confirm that the mechanisms which they contain in order to safeguard financial viability include restrictions on investments and agreed method statements based on the schemes’ initial business planning assumptions. All these measures are kept under close review.
We closely monitor the three tenancy deposit scheme providers with contracts with Communities and Local Government and hold regular contract governance meetings with them. We are satisfied that their business models are adequate to facilitate the ongoing financing of their schemes.