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Landlords and agents embrace Tenancy Deposit Solutions

from "UK Landlord" magazine, September 2007

By the end of May, more than 60,000 deposits had been registered with the 3 government-recognised tenancy deposit schemes, at a rate of 1,500 new deposits per day, amounting to £58 million worth of deposits protected.

A large proportion of these deposits are being held by landlords and letting agents who have signed on to Tenancy Deposit Solutions Limited (TDSL), the insurance-based scheme endorsed by the NLA and administered by Hamilton Fraser Insurance plc. In fact, response to the Scheme has been such that TDSL has had to hire extra staff to register the large number of applicants.

Commenting on the increasing numbers of deposits being registered, Liz Phelps of the Citizens Advice Bureau said: "By signing up, landlords are demonstrating that they are providing a professional service in which tenants can have confidence." In contrast to the alternative custodial scheme, TDSL allows landlords to hold deposits themselves via a straightforward, pay-as-you go scheme. Fees for the scheme are tax-deductible. The scheme also offers a mediation service in the event of a dispute between landlord and tenant at the end of the tenancy.

NLA and TDSL Chairman, David Salusbury, noted that the initial confusion over tenancy deposit protection and concerns that landlords may no longer be allowed to hold deposits themselves are now in the past. "All parts of the sector are now getting to grips with what tenancy deposit protection actually involves, and that bodes well for its success." He also expressed the initiative's potential to raise standards and increase professionalism across the sector, to the benefit of not just tenants but also landlords and agents.

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