Deposit Protection - First Line of Defence Against Rogue Landlords and Cowboy Agents

LONDON, July 11, 2011 -

Reports of a rise in bad landlords along with soaring rental
demand and the return of buy to let investors have all led to the
Tenancy Deposit Scheme to remind tenants to be careful and protect
themselves. Asking for evidence of tenancy deposit protection is a
first line of defence against rogue landlords and cowboy
agents.

Tenancy deposit protection has been mandatory for over four
years, since April 2007, and while a high proportion of tenants are
protected through one of the three authorised deposit protection
schemes, some may not be.

According to the Tenancy Deposit Scheme, tenants using regulated
agents or whose landlords are members of landlords organisations
will most probably have their tenancies registered and their
deposits protected. It is easy to check and a registered deposit
can be seen as a first line of defence for a satisfactory
tenancy.

“If tenants cannot get evidence that their tenancy is protected,
they should seek advice from ourselves, a lawyer or a housing
advice centre. Failing to protect a deposit is a serious matter and
one where the courts can award a penalty of up to three times the
deposit value,” warned Steve Harriott, Chief Executive of the
Tenancy Deposit Scheme.

In today’s fast rising rental market, it is difficult to
calculate just how many tenants deposits are not been registered
with one of the three authorised schemes. It is certainly many more
than the total registered across the three schemes.

“The landlord or letting agent who provides tenants with the
details of tenancy deposit protection at the outset is most likely
to be conducting the business of letting in an ethical and
professional manner,” added Steve Harriott. “Registration is easy
to check and should be a first priority for all tenants.”

The Tenancy Deposit Scheme currently has nearly a million
tenancies registered, protecting over £1 billion in deposits. Last
month there were over a million visits to the TDS website, href="www.tds.gb.com">www.tds.gb.com

Media contact Malcolm Harrison +44-(0)20-7581-8335