We are delighted, that after a detailed procurement process by the government, we will soon be able to offer landlord and agent the option of using either custodial or insurance based protection in England and Wales.
Remember, protecting tenants’ deposits has been a legal requirement in England and Wales since 2007, and landlords and agents have two options in order to comply with the law: using an insurance scheme that involves a fee or a free-to-use custodial scheme.
Our CEO Eddie Hooker said:
“We’ve been hopeful of winning the contract for some time and have already begun an exciting and ambitious reboot of mydeposits. We’re taking a fresh look at deposit protection and are investing in our systems and processes to create a faster, smarter scheme designed to remove delays and hassle from deposit protection.”
What does this mean for landlords and agents?
For the very first time, landlords and agents who prefer to use the custodial based option will now have a choice over which scheme they use.
What’s the difference between custodial and insurance?
|How are the schemes different?||Insurance based protection||Custodial based protection|
|You hold the deposit in||Yes||No|
|We hold the deposit in a secure bank account||No||Yes|
|No fee for protecting||No||Yes|
|Immediate return of the deposit||Yes||No|
|Free dispute resolution process||Yes||Yes|
|Free access to guides and resources||Yes||Yes|
|Complete online service||Yes||Yes|
When does the custodial option go live?
We will be able to offer custodial based protection to our members from April 2016. The exact date will be confirmed early next year.
What other exciting changes are happening?
At the same time, we will have completed our redevelopment of mydeposits to make it even easier for our members to comply with deposit protection law. Our new systems mean that you can expect to see faster, smarter and simpler deposit protection from April 2016.
Can I switch to the Custodial option halfway through an insurance protection?
If come April, you are already an existing member of mydeposits with live protections using the insurance based option then yes, it will be possible to lodge these deposits with mydeposits and change to the custodial based option.