Analyses the latest government proposals for a tenancy deposit scheme in the Housing Bill 2003 ss201-04 (ss206-09 in Housing Bill as amended on report 20 October 2004) through which all rental deposits held in relation to private sector lettings would be protected and subject to regulation. Looks at the potential effects of the proposed scheme on the letting industry, how deposit disputes would be settled, who would pay the set-up and running costs of the new deposit-taking schemes, the procedures to be followed by landlords and agents and what actions tenants will be able to take against them if they do not comply with the new deposit-taking provisions. No timetable has yet been issued for the introduction of tenancy deposit regulations. Summarises the pros and cons for the letting industry of the deposit scheme proposals. The Housing Bill as amended on report 20 October 2004 is available at www.parliament.uk.