Currently viewing the tag: "MyDeposits"

The Chief Executive of the Tenancy Deposit Scheme,(TDS) Steve Harriott, has blasted the coalition government over continued disinterest in the UK private rental sector, (PRS) in terms of regulatory measures, and urged all landlords to form their own self-regulatory organisation.

The TDS Chief Executives comments emerged following the sudden closure of another letting agent who closed their doors without notifying the landlords or tenants on their books.

Many hundreds of tenants were left wondering if their tenancy deposits were secure in one of the 3 official Government schemes (TDS, TPS or MyDeposits) or if the agent has closed taking their deposits with them, leaving tenants with no way of reclaiming their deposit monies.

Mr Harriott said he was “Sick of crooked and inept letting agents getting nothing but a slap on the wrist and a fine that can, in most cases, be easily paid for potentially putting tenant lives at risk. There needs to be proper regulation of the private rental sector, and if the government aren’t intending to impose regulatory measures then members of the PRS must band together and organise their own”.

The comments from the TDS Chief Executive come at a time when the latest English Housing Survey (EHS) released data from questioning private sector tenants about deposit protection.

Despite deposit protection being a legal requirement for the last five years,

  • 47% of private tenants said their deposit had been protected
  • 24% said their deposit had not been protected
  • 28% did not know.

70% of private tenants whose deposits were protected had the money returned in full at the end of their tenancy but only 17% of private tenants received only part of their deposit back due to damage or poor maintenance and a further 12% received none of their money back for a number of reasons.

While more than half of tenants were given particular reasons for retention of some or all of the deposit, 40% were not told why their deposits were withheld at all.

Complaints Over Tenancy Deposits Increase

Complaints Over Tenancy Deposits Increase

Homeless charity Shelter is urging private sector rental tenants to make sure their deposits are protected, having seen calls regarding deposit protection issues rise by 80% in the last two years.

According to the homeless charity, the average deposit for a privately rented residential property currently stands at £979 (GBP), meaning that if a deposit is withheld at the end of a tenancy, people will be pushed into debt, or even have difficulty securing to a new home.

Landlords who fail to place their tenants’ deposits in one of three authorised schemes within 30 days will face prosecution but it seems many tenants are unaware of the new deadline, leaving some landlords free to flout the law.

Shelter’s chief executive, Campbell Robb, commented: “It is extremely worrying that we have seen such a huge rise in problems with tenancy deposits at a time when privately renting is no longer just a stepping stone to something better, but a long term reality for more and more families.”

Landlords who don’t protect tenants’ deposits can face a penalty of one to three times the full value of the deposit, which will then be awarded to the tenant.

There Will Never Be A Better Time To Invest In Property

MyPropertyPowerTeam.co.uk helps property investors and landlords build their own property power team to enable them to profit from property - Visit our main site now!