Launch of Tenancy Deposit Scheme proving a success

Monday, 13, Aug 2007 01:02

The implementation of the Tenancy Deposit Scheme has been a success according to the government organisation responsible for the initiative.

Four months since its launch, deposits of 225,000 tenants are now guaranteed under the scheme, with a combined value of £150 million.

On average 7,000 new tenancies are registered each day, said the Tenancy Deposit Scheme, and 125,000 landlords are also signed up.

This has been a remarkable success, however there could be problems looming.

Lawrence Greenberg, chief executive of the Tenancy Deposit Scheme, said: "There is still too much complacency about mandatory deposit protection in the rental market. As a result, some landlords, and even their agents, could be in for a rude shock as tenancies come to an end."

October 6th marks six months since the launch of the scheme and will see the first wave of tenancies to come to an end since its introduction.

Research by the Tenancy Deposit Scheme suggests one in five landlords are still unaware of the mandatory nature of the tenancy deposit protection, and the organisation is bracing for a wave of litigation.

Failure to comply with the scheme means a landlord can be liable to pay a tenant up to three times the cost of their deposit and can also forfeit possession of their property.

"As a result, some landlords, and even their agents, could be in for a rude shock as tenancies come to an end," concluded Mr Greenberg.