Thursday, 17 September 2009

1 in 3 landlords breaking the law over tenant deposits

The Deposit Protection Service has issued a press release claiming that 1 in 3 landlords are not complying with the legislation regarding tenant deposits. The press release reads:

The number of landlords flouting tenancy deposit legislation has halved in the past year – but
almost one in three is still not obeying the law.

A survey by The Deposit Protection Service (DPS) revealed that 30 per cent of landlords are
prepared openly to admit to not registering a deposit – compared to 61 per cent in 2008.

The DPS has now backed proposals for a register of landlords, which would encourage
compliance with the law. Landlords have been required to register deposits with a
Government-accredited scheme since April 2007.

Kevin Firth, Director of The DPS, said: “Good progress has been made within the industry at
raising awareness of landlords’ legal responsibilities.”

“The fact that the number of landlords ignoring the law has halved is testament to the fact
that most landlords want to do the right thing.”

“But more needs to be done and ignorance is no excuse. We believe that the introduction of a
national register would make landlords more accountable and offer tenants a greater level of

“Mandatory registration and deposit protection would leave rogue landlords with nowhere to
hide! “

The DPS is the only scheme to physically hold onto a deposit. It is provided free of charge,
and funded entirely by the interest earned from deposits held in the scheme.

Since the launch of the DPS in 2007, around 700,000 deposits have been protected, worth
over £520 million pounds.

The DPS surveyed more than 500 landlords to ask which, if any, deposit protection scheme
they registered their tenants’ deposits with.

For more information about tenant deposits please click here Tenant Deposits