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New deposit system 'positive'
2008-12-16
The government's new tenancy deposit protection scheme should have a positive affect on buy to let mortgage holders, an expert has said.
Landlordzone.co.uk editor Tom Entwistle believes the system has improved landlord-tenant relationships since its introduction last year.
Mr Entwistle noted that the scheme takes the deposit out of the landlords' hands.
The Department of Communities and Local Government's assessment of the new tenancy deposit protection scheme in April 2008 stated that landlords not protecting a deposit could be charged with a civil offence.
In its first year of operation nearly £900 million of tenants' deposits were safeguarded under the government's scheme, which has three providers: Tenancy Deposit Protection: The Deposit Protection Service, My deposits.co.uk and The Tenancy Deposit Scheme.
Although a minority of landlords abused the old system, Mr Entwistle commented that it was working quite well, providing both parties acted fairly.
Some landlords were "very reasonable about deposits", he said.
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