LONDON, October 19 /PRNewswire/ -- In the run up to mandatory Tenancy Deposit Protection, evidence isgrowing of a split between professionals in the lettings industry and mostprivate landlords.
This part of the Housing Act 2004 will now come into force next April.This delay in implementing mandatory deposit protection has been used to goodeffect by some landlords in the private rented sector. This is shown by thesurvey for the three months to the end of September conducted for the TenancyDeposit Scheme, TDS. At the same time the lettings industry has proven itselfto be increasingly prepared for the new deposit regime. The evidence for thiscomes from the number of lettings agents who have joined up and the case loadfor the scheme's adjudicators.
Three out of ten landlords now claim to fully understand how compulsorydeposit schemes will work but, overall, the number of landlords who are awareof what they must do when mandatory deposit protection becomes law next yearhas remained static.
"This is disappointing," said Lawrence Greenberg, Chief Executive of theTenancy Deposit Scheme,. "It demonstrates to us that while the moreprofessional landlords are gearing up for the new deposit protection regime,it is likely that a great many landlords in the private rented sector will bedangerously ill-prepared for the start of mandatory membership of a depositprotection scheme."
Meanwhile, the number of letting agents who have joined the scheme forregulated agents has been increasing at an average of over 75 a month,despite the delay in implementation of all mandatory schemes. There are nowwell over 1,300 letting offices already operating in the voluntary TenancyDeposit Scheme.
In addition, the case load for the adjudicators has also grown. This isnow running at over 60 dispute resolutions a month, against just 25 in thesame quarter of 2005.
"As an industry, the rental market is gearing up successfully forimplementation day next April," said Lawrence Greenberg. "The problem is thattoo many private landlords have put the whole subject of mandatory depositprotection on the back burner. This is dangerous and the problem we are nowseeking to address."
Although mandatory tenancy deposit protection will not come into forceuntil next April, the voluntary scheme for the regulated agents has beenrunning for the last two and half years. It was launched with the backing ofall three professional bodies that are active in the private rented sector:ARLA, the Association of Residential Letting Agents, the NAEA, the NationalAssociation of Estate Agents and RICS, the Royal Institution of CharteredSurveyors.
Full information for landlords, tenants and letting agents is availableon www.tds.gb.com or on 0845-226-7837.
Editor's note: This release can be downloaded from the press releasesection of the scheme website, as above.
Tenancy Deposit Scheme
Media contact Malcolm Harrison +44-(0)20-7581-8335
