Awareness of tenancy deposit schemes rises
Tuesday, 25 Apr 2006 14:22
Growing numbers of landlords are aware of tenancy deposit rules
Awareness of the new tenancy deposit scheme among landlords has increased during the last three months.
The number of landlords who are fully aware of the new legislation, which comes into force later this year, has increased from 16 per cent to 25 per cent.
However, a quarter of landlords are still completely unaware of the new rules that they need to comply with by October 1st.
Compulsory tenancy deposit schemes are part of the Housing Act 2004, and will apply to all landlords who rent properties where the rental value is less than £25,000 a year.
Until now, landlords have taken deposits from tenants at the start of the rental agreement, to cover themselves for financial loss in case of damage caused by tenants.
They have frequently been a cause of dispute between tenants and their landlords, with landlords and agents withholding deposits without justification, and tenants defaulting on their last month's rent because they have damaged a property and know their deposit will be retained.
But under the tenancy deposit protection scheme, tenants' deposits will be held securely until the end of the tenancy, when either part or the whole of the deposit will be returned to the tenant or landlord provided both parties are in agreement.
In the case of a dispute, the deposit will be retained until either the tenant or landlord obtains a court order detailing how much of the deposit each party should receive.
Research by the Tenancy Deposit Scheme, a voluntary scheme already in operation, shows that 45.2 per cent of landlords are aware of an autumn deadline, but not the detail of the legislation.
"With six months to go, we are winning the education battle," said Lawrence Greenberg, chief executive of the Tenancy Deposit Scheme.
"This time last year, we were no expecting to have been able to get so far with the information campaign and to have been able to get the message across to so many landlords in the private rented sector."
For a factsheet on tenancy deposit schemes, go to:
www.odpm.gov.uk
For more information on the Tenancy Deposit Scheme, see:
www.tds.gb.com/
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