Calls For Insurance Backed Tenancy Deposit Schemes To Be Scrapped

Politicians Called On To Disband
Insurance Backed
Tenancy Deposit Schemes

The estate agent review site, All Agents, is calling on politicians to scrap insurance based tenancy deposit schemes claiming that such tenancy deposit protection schemes are misleading, as tenants and landlords may find themselves in the precarious position of believing that their deposits are securely protected.

All Agents says that: The unfortunate reality is that a letting agent could simply exit themselves from the scheme, which would negate the deposit protection insurance and potentially leave tenant deposits unprotected. Even worse, a letting agent could go out of business, meaning the likely loss of any tenant deposit funds that the letting agent may have held on behalf of their landlord clients.

It has already been reported in the British press and media that some unscrupulous property management firms have used tenant deposit money to assist with company cash flow, or as in some cases, to fund luxurious lifestyles.