With one day to go until the introduction of mandatory tenancy deposit protection, TDSL has seen rapid growth in the number of landlords and agents registering for its insurance-backed scheme.
However, tenants remain largely unaware of the rules, with just 15 per cent saying they knew of the introduction of tenancy deposit protection.
David Salusbury, chairman of TDSL, said: “From Friday, a landlord who takes a deposit from a tenant in England and Wales under a new assured shorthold tenancy starting on or after this Friday will be required by law to protect it under a government-authorised tenancy deposit protection scheme. While familiarity among landlords is growing steadily, tenants appear to have little knowledge of the new regime. Fewer than one in seven tenants has even heard of it. It’s important that tenants get up to speed and know their rights – after all, tenancy deposit protection is for their benefit.”
TDSL’s research indicates that 83 per cent of tenants are usually asked for a deposit. The average deposit amounts to £700.
Salusbury commented: “Taking a cash deposit, usually equivalent to one month’s rent or sometimes more, is good practice in the private rented sector. It is one of the few safeguards available to the landlord.”
The penalties for non-compliance with deposit protection are severe. If the landlord fails to protect the deposit within 10 days, the tenant can apply for a court order requiring it to be protected. If the court is satisfied that the deposit is not being held in an authorised scheme, it can order the landlord to repay the deposit. The court can also order the landlord to pay the tenant three times the amount of the deposit.
The research shows the most common reasons for deposits being withheld are cleaning (44 per cent), damage to carpets (21 per cent) and damage to furniture (12 per cent).
Main reasons for deposits being withheld:
Cleaning - 44 per cent
Garden left untidy - 8 per cent
Damage to furniture - 12 per cent
Damage to bathroom - 4 per cent
Damage to kitchen - 8 per cent
Flood or water damage - 3 per cent
Cigarette burns - 1 per cent
Damage to carpets - 21 per cent
The research also highlights the fact that an inventory is not always agreed between the parties. According to tenants, almost half of landlords (45 per cent) do not provide an inventory and only a very small proportion (2 per cent) included photographs showing the condition of the property, its fixtures and furnishings at the beginning of the tenancy.
Salusbury added: “An inventory is important and a photographic record of the property can help to avoid unnecessary disputes at the end of the tenancy. With the advent of tenancy deposit protection, these items become even more important.
“The government has introduced legislation to weed out rogue operators. Co-operation between landlord and tenant is the best way forward. TDSL is well placed to enjoy the confidence of all parts of the sector. We are committed to helping a smooth transition to the new regulatory regime.”
