29/11/2007

Rounded Picture of Success from The Tenancy Deposit Scheme

Figures recently published today in a News Bulletin circulated to all members of the Tenancy Deposit Scheme (TDS) give the first rounded picture of the scale of the Scheme's success during the first six months since deposit protection became a legal requirement in the Private Rented Sector.

The Tenancy Deposit Scheme, one of the three schemes authorised by the government, now safeguards over £283 million in tenants' deposits. There are 217,134 landlords joined to the scheme, covering 282,364 tenancies that house 428,769 tenants. The average deposit covered by the Scheme is over £1,200, and the TDS News Bulletin shows that the volume of disputes is rising and the first disputes under the new statutory requirements are beginning to appear.

More than half of all disputes include disagreements over cleaning premises at the end of a tenancy. Nearly half involve damage while other dispute favourites include rent arrears and gardening. Overall, the scheme finds equally in favour of landlords and tenants.

The Bulletin shows membership of the Tenancy Deposit Scheme running at some 5,350 branches, belonging to some 3,500 lettings firms. 80% of these firms are regulated by membership of their professional bodies, while most of the rest are either unregulated or belong to other industry organisations. There are also a number of corporate landlords, some of them particularly active in the student sector of the lettings market.

The Tenancy Deposit Scheme is operated by The Dispute Service, a not-for-profit organisation, set up in 2004 by the three professional bodies active in the private rented sector, ARLA, the NAEA and RICS. This was in anticipation of the implementation of tenancy deposit protection under the Housing Act 2004.

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