mydeposits will stick by all letting agents
22 January 2009
a Government-authorised insurance-based tenancy deposit protection scheme, will
not be following the decision by The Tenancy Deposit Scheme (TDS) to withdraw
insurance protection for deposits held by 'unregulated' letting agents.
6 April 2009, TDS
will no longer accept letting agent members that are not affiliated to a recognised
professional body.* Existing agents that do not satisfy this basic
membership criterion will have to seek alternative arrangements for all deposits
requiring protection after this date.
research undertaken by mydeposits has found there is no evidence to suggest tenants
and landlords are more likely to experience deposit disputes by using an unaffiliated
agent as opposed to an affiliated agent. Although 56 per cent of letting agent
disputes come from unaffiliated letting agents, those agents affiliated to a professional
body still account for a significant amount (44 per cent).
membership criteria and enforcement of the mydeposits Scheme Rules will be tightened
to protect mydeposits and its users from the risk of letting agent insolvency
in the wake of the recession.
Hooker, Chief Executive, mydeposits.co.uk, said: "Our research shows that letting
agent deposit disputes notified to mydeposits are from both members and non-members
of recognised trade bodies in almost equal numbers. From a disputes perspective,
unaffiliated agents do not represent a higher than normal risk.
in this uncertain financial climate it makes sense to introduce more stringent
financial checks on all our letting agent members, affiliated or otherwise, to
ensure they adhere to our Scheme Rules and can provide evidence of robust and
appropriate financial security."
who would like to check if their deposit is protected with mydeposits should go
The professional bodies are:
of Residential Letting Agents
Association of Estate Agents
National Approved Lettings Scheme
Institute of Chartered Surveyors
information about mydeposits
is the trading name of Tenancy Deposit Solutions Limited, a company jointly owned
by the National Landlords Association and HFIS plc T/A Hamilton Fraser Insurance
(the Scheme Administrator) to deliver an insurance-backed tenancy deposit protection
scheme under contract from Communities & Local Government. Landlords wishing to
use this scheme are required to register with the Scheme Administrator. They can
find out more and register by visiting www.mydeposits.co.uk.
Registered members of the Scheme are able to protect and unprotect deposits at
the beginning and end of tenancies. Fees are tax-deductible. In the event of a
dispute at the end of the tenancy agreement, both parties are offered access to
alternative dispute resolution (ADR). This procedure will be evidence-based, relying
on documentation and records.
Fraser Insurance is the trading name of HFIS plc, a long-established insurance
broker, authorised and regulated by the Financial Services Authority. Hamilton
Fraser provides insurance services to clients throughout the UK and is located
in New Barnet, Hertfordshire. Hamilton Fraser is a major player in the highly
specialised property insurance sector, and offers a tailored product to both residential
landlords and managing agents. The NLA
and Hamilton Fraser have a long-standing relationship, with Hamilton Fraser offering
its range of Landlord Solutions insurance products to members of the NLA
National Landlords Association:
National Landlords Association (NLA) exists to protect and promote
the interests of private residential landlords. With almost 20,000 individual
landlords from around the United Kingdom and over 90 local authority associates,
it provides a comprehensive range of benefits and services to its members and
strives to raise standards in rented accommodation. The NLA seeks to safeguard
landlords’ legitimate interests by making their collective voice heard by local
and central government and the media. The NLA seeks a fair legislative and regulatory
environment for the private-rented sector while aiming to ensure that landlords
are aware of their statutory rights and responsibilities
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