Two thirds of landlords breaking law
Monday, 07 Jul 2008 13:34
Landlords storing cash under the bed
Nearly two thirds of landlords in the UK property market are breaking the law by failing to adhere to new tenancy deposit scheme rules, new research reveals.
According to findings from the Deposit Protection Service (DPS), some 62 per cent of landlords are willing to admit openly to prospective tenants that they were not registered with any deposit protection scheme – as required by law.
The DPS argues that, not only is tenants’ money being put at risk; landlords are also leaving themselves open to hefty fines.
Just 18 per cent of landlords were registered with the DPS, 14 per cent with other schemes – and six per cent did not know.
Since April 6th 2007, every deposit-taking landlord and letting agent in England has to use one of two tenancy deposit protection methods: a custodial or insurance based scheme, for any new or updated tenancies.
"These figures are staggering. What is particularly shocking is that when asked, landlords were willing to openly admit that they were flouting the law, either by design or through ignorance," said Kevin Firth, client services director for the DPS.
"Fifteen months after legislation was introduced, there is no excuse for failing to properly protect your tenants’ deposits.
"Landlords need to understand that failing to register a deposit is quite simply an unlawful act. There are no two ways about it, and ignorance is no defence," he added.
The DPS carried out the survey after hearing mounting anecdotal evidence that landlords were continuing to keep the deposits 'in their back pockets' despite it being a clear breach of the law.
Chris O'Toole