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Press release
Landlords embrace Tenancy Deposit Protection
21 June 2007
Landlords and agents are embracing mandatory tenancy deposit protection, which became law on 6th April. To date thousands of deposits have been protected with Tenancy Deposit Solutions Ltd (TDSL), and early signs are that the numbers are increasing. In addition, thousands more deposits have been prepaid and block-booked by portfolio landlords.
David Salusbury, chairman of TDSL, says: "At first it looked as if many landlords could have missed the new legislation. This might have been partly because the government's campaign to publicise the changes in the law appeared to taper off sooner than we expected. There is also some evidence that tenants in general did not know about the new regulatory regime, despite the fact that it is designed for their benefit".
But now the message seems to be getting through. May and early June has seen a groundswell of activity from both landlords and letting agents as deposits taken in respect of new tenancies are protected. Landlords and agents are finding the TDSL scheme particularly attractive as it lets them hold deposits themselves, it is simple to use, and the pay-as-you-go fee structure is modest - and all the fees are tax-deductible against rental income.
In response to this build-up of activity TDSL has hired extra staff to meet strong demand from landlords and agents wishing to register for the TDSL insurance-backed scheme and to protect deposits. So far, 77% of registrations have been for landlords and 23% for letting agents, with most transactions carried out online using straightforward registration and fee -protection procedures.
David Salusbury says: "Landlords need to be aware of the legislation and take action. The penalties for non-compliance are heavy. 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. With potential repercussions of that magnitude, ignorance of the new law is definitely not bliss."
For further information, please contact:
Steven Hilton
Media Relations Manager, NLA
T: 020 7840 8906
M: 07779 604 781
E:
Notes to Editors:
About the Tenancy Deposit Solutions Limited:
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.
No fees are payable until a member protects their first deposit. Fees are tax-deductible.
Landlord members of the Scheme can protect and unprotect as many deposits as they wish, for as long as the relevant tenancy lasts.
In the event of a dispute at the end of the tenancy both parties are offered access to alternative dispute resolution (ADR). This procedure will be evidence-based, relying on documentation and records.
About the NLA:
The National Landlords Association (NLA) exists to protect and promote the interests of private residential landlords. With almost 14,000 individual landlords from around the United Kingdom and over 80 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.
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, branded as “Landlord Solutions” to both residential landlords and managing agents, underwritten by AXA Insurance(UK) plc. 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.