28 May 2008
mydeposits.co.uk, a Government-authorised insurance-based tenancy deposit protection scheme protecting over £200 million of deposits, has reminded landlords that they don’t have to lose control of their deposits even though they must now be protected throughout the course of the tenancy.
According to the Government, over 1 million deposits have now been protected. Much of this cash has either been deposited in a bank account or retained by a letting agent on behalf of landlords. Either way, it means the landlord hasn’t been able to protect and retain their tenants’ cash.
mydeposits.co.uk is the only scheme specifically designed for landlords which enables them to hold on to their tenants’ deposits instead of handing them over to a third party. The scheme offers an easy to use ‘pay-as-you-go’ format with only modest fees.
David Salusbury, Chairman, mydeposits.co.uk, said:
"Just because a landlord now has to protect their tenants’ deposits, it doesn’t mean they have to hand over the cash to a third party. Recent figures have shown that this type of self-regulation for mandatory tenancy deposit protection is working well with only 341 cases being notified to the scheme (figures as of April 2008).
"Landlords who fail to comply with the tenancy deposit protection legislation face considerable risks. They could be forced to pay a fine of three times the deposit amount and limits will be placed on their ability to seek possession for as long as the deposit remains unprotected.”
* The professional bodies are:
For further information and case studies of tenants, landlords and letting agents who have been using mydeposits.co.uk, please contact:
Tel: 020 7840 8906
Mob: 07508 031 084
Notes to editors:
Mydeposits is the trading name of Tenancy Deposit Solutions Limited, a company jointly owned by the National Landlords Association and HFIS plc T/A Hamilton Fraser Insurance (the Scheme Administrator) to deliver an insurance-backed tenancy deposit protection scheme under contract from Communities & Local Government. Landlords wishing to use this scheme are required to register with the Scheme Administrator. They can find out more and register by visiting www.mydeposits.co.uk. Registered members of the Scheme are able to protect and unprotect deposits at the beginning and end of tenancies. Fees are tax-deductible. In the event of a dispute at the end of the tenancy agreement, both parties are offered access to alternative dispute resolution (ADR). This procedure will be evidence-based, relying on documentation and records.
About Hamilton Fraser Insurance:
Hamilton Fraser Insurance is the trading name of HFIS plc, a long-established insurance broker, authorised and regulated by the Financial Services Authority. Hamilton Fraser provides insurance services to clients throughout the UK and is located in New Barnet, Hertfordshire. Hamilton Fraser is a major player in the highly specialised property insurance sector, and offers a tailored product to both residential landlords and managing agents. The NLA and Hamilton Fraser have a long-standing relationship, with Hamilton Fraser offering its range of Landlord Solutions insurance products to members of the NLA.
About the National Landlords Association:
The National Landlords Association (NLA) exists to protect and promote the interests of private residential landlords. With almost 20,000 individual landlords from around the United Kingdom and over 90 local authority associates, it provides a comprehensive range of benefits and services to its members and strives to raise standards in rented accommodation. The NLA seeks to safeguard landlords’ legitimate interests by making their collective voice heard by local and central government and the media. The NLA seeks a fair legislative and regulatory environment for the private-rented sector while aiming to ensure that landlords are aware of their statutory rights and responsibilities.