26/06/2008

Low dispute rate encouraging, says Tenancy Deposit Scheme

The Tenancy Deposit Scheme (TDS) has welcomed the fact that the first year of mandatory tenancy deposit protection has produced a lower-than-expected dispute rate. As of 1 June, under 2% of tenancies registered with it have ended with a dispute over the deposit.

With the average length of tenancies running at nearly 18 months, it has not been possible, until now, to attempt an accurate assessment of dispute levels or a forecast for the whole of 2008. Dispute volumes for this year are currently projected at about 6,000.

Said Lawrence Greenberg, Chief Executive of the TDS, “A dispute rate of only 2% is very encouraging, as it suggests that agents, landlords and tenants are getting to grips with deposit protection and all that it entails. With this new understanding, they are more inclined to honour the tenancy agreements they have made.” However, he added, “There is still a long way to go to ensure that everyone concerned understands the detail of the mandatory requirements for tenancy deposit protection under the Housing Act 2004. But the pattern of disputes is now well established, with cleaning being by far the largest element.”

Further information about the scheme is available at www.tds.cb.com.

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