Landlords shaky on Tenancy Deposit Scheme

Permalink: Landlords shaky on Tenancy Deposit Scheme
by Gill Montia

Research from buy-to-let brokerage, The Money Centre, indicates that many landlords are unaware of the Tenancy Deposit Scheme (TDS).

In addition, 22% of those who are aware of the scheme do not fully understand it.

TDS aims to protect tenancy deposits and provide a fairer system for settling disputes concerning the return of deposits.

Despite the fact that it was introduced in April 2007, 40% of landlords questioned in the survey were unaware of the scheme.

The results compare with similar research undertaken by the broker in October 2007 and show that awareness has since dipped, with 6% fewer landlords saying they are aware of the scheme and understand it.

Lynsey Sweales, marketing and PR director at The Money Centre, says: “The results of this research are extremely worrying. The scheme has now been in place for nearly a year, yet many landlords are still unaware of the legislation and its implications.”

She adds: “The good news is more than half of those surveyed did believe the scheme would benefit both landlords and tenants, as it was designed to do. But until awareness, understanding and participation can be improved the scheme won’t be fully effective.”

The Money Centre is advising landlords ignorant of TDS to do their research immediately. It is also suggesting they join a local landlords’ association as “these organisations … can act as a forum to share best practice.”

Fifty per cent of the landlords questioned in the survey said they had at some point withheld all or part of a tenant’s deposit to cover costs arising from property damage, cleaning or unpaid utility bills.