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Hello. I am a solicitor with over 15 years experience I will try to help you with this. The deposit money held in the scheme is the tenant's money it can only be withheld from the tenant and given to the landlord for reasons relating to damage and disrepair caused by the tenants. The landlord is not entiteld to the deposit money for disputes over rent.
The scheme should have a dispute resolution procedure to deal with disputes. Their rules should make what I have stated above nice and clear. Do yo know which scheme it is?
The deposit is held in a DPS. The resolution proceedure is I think the TDS?
Can you confirm that 1 month's notice is all that is required under a monthly rolling periodic tenancy?
Yes that is right. You might find some useful links below. http://england.shelter.org.uk/get_advice/tenancy_deposits/getting_your_deposit_back/deductions_from_tenancy_deposits thi si the Shelter guidance on tenancy deposit disputes.
http://www.tds.gb.com/resources/files/2013/A%20guide%20to%20deposits%20disputes%20and%20damages.pdf TDS guide to disputes over deposits.
I am sorry but I have stated something incorrect above. Disputes over rent arrears can be part of a deposit dispute. However your daughter and her partner in giving 1 month's notice and paying up to the end of that have complied with their obligations. I apologise for that - perhaps due to typing something before having my first cup of coffee.