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Increased take-up of Tenancy Deposit Protection

from "UK Landlord" magazine, July 2007

Tenancy Deposit Solutions Limited (TDSL) has reported a groundswell of activity from both landlords and letting agents registering deposits taken in respect of new tenancies.

The mandatory tenancy deposit protection rules came into force on 6 April 2007.

The insurance-based tenancy deposit scheme designed for landlords, operated by the NLA and Hamilton Fraser Insurance, allows landlords and agents to hold deposits themselves, using a pay-as-you-go fee structure, and all the fees are tax-deductible against rental income.

So far, 77 per cent of registrations have been for landlords and 23 per cent for letting agents, with most transactions carried out online using the straightforward registration and fee-protection procedures.

NLA Chairman, David Salusbury, reminds landlords of the penalties for non-compliance with the new legislation:

"If landlords are in breach of the law, the courts can order them to pay to the tenant a penalty of three times the amount of the deposit. Furthermore, failure to protect a deposit can compromise a landlord's ability to gain possession of a property through the courts."

For more information, see the TDSL website, www.mydeposits.co.uk

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