mydeposits
About us
Press release
Tenancy Deposit Protection means 86% of tenants get some or all of their cash back
4 April 2008
mydeposits.co.uk, a Government-authorised insurance-based tenancy deposit protection scheme protecting over £177 million of deposits, has published its figures marking the first anniversary of the legislation.
Out of 200,000 individual deposits protected throughout the year by over 31,000 landlords and letting agents, there were only 341 actual disputes notified to the scheme.
From these 341 disputes, only 20% (64 cases) of the more intractable cases needed to be adjudicated through Alternative Dispute Resolution (ADR). This process relies on evidence provided by all parties in order to reach a final and binding decision on how much, if any, of the deposit should be returned to the tenant.
In 86% of these more serious disputes, the ADR has found in favour of the tenant: 45% will have received their full deposit and 41% will have received a proportion of their deposit as determined by the adjudicator. In 11% of these cases landlords and letting agents have been able to withhold the total deposit.
David Salusbury, Chairman, mydeposits.co.uk, said:
"After only 12 months, it is quite clear that tenancy deposit protection has clarified the rights and responsibilities of tenant, landlord and letting agent. With so few disputes actually being notified and only 20% of these requiring external adjudication, it seems that this kind of self-regulation is proving to be extremely effective.
"The risk to landlords of not complying with the legislation is considerable. Not only would a landlord appear to be totally oblivious to their legal obligations but they will receive a fine amounting up to three times the deposit. In addition, for as long as the deposit remains unprotected, a landlord faces significant limits on their ability to seek possession."
For further information, please contact:
Steven Hilton
Media Relations Manager, NLA
T: 020 7840 8906
M: 07779 604 781
E:
Notes to Editors:
About mydeposits.co.uk (a trading name of 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 National Landlords Association:
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.