Tenants are risking more than one billion pounds in deposits held by their landlords, new research reveals - and with around twice as many black and minority ethnic households living in the private rental sector compared to white households, Shelter is urging tenants from BME communities to use a new scheme to protect their money. 

Last year, more than three-quarters of all tenants who had money withheld claimed it was retained by their landlords unfairly. With the average deposit now reaching £700 in England, losing a deposit causes financial hardship and in the worst cases, homelessness. 

But the new tenancy deposit protection scheme, which comes into effect on 6 April, requires landlords to protect tenants' deposits in one of three independent government-approved schemes. The scheme also provides a quick, easy way to resolve disputes without resorting to the courts. 

Shelter has produced a special red envelope to help tenants protect their money when they hand it over. The envelope sets out landlords' obligations under the new law and includes a handy receipt to prove the deposit was paid. 

Adam Sampson, chief executive of Shelter, said: "Anyone who uses our special deposit envelopes will show their landlord they know their rights under the new Tenancy Deposit Protection scheme.

"Deposits are often large sums of money - protecting this cash from being unfairly held back will help ensure tenants from BME communities do not find themselves out of pocket or worse, facing homelessness because they can't get the cash together for another deposit for a new rented home."

For further information visit www.shelter.org.uk