The ‘them’ and ‘us’ antagonism between landlords and tenants is disappearing, thanks to the introduction of mandatory tenancy deposit protection five years ago.
The claim is due to be made today by TDS boss Steve Harriott, speaking at the Property Business Show.
He is also due to forecast an increase in the number of authorised deposit protection schemes, together with widened use of Alternative Dispute Resolution.
Harriott will say: “No longer is it automatically believed that private sector landlords will regard the deposits they hold as part of the rent, nor that tenants will withhold the last rent payments for fear of not getting their deposits back.
“And, both landlords and agents have become much better at managing disputes at the end of a tenancy.”
Harriott will cite the low level of tenancy deposit disputes of around only 1% over the last five years as evidence of this.
According to the English Housing Survey, some 2.75m households have assured shorthold tenancies and the latest CLG statistics show that around 2.36m deposits are now safeguarded.
According to Harriott, the two existing insured tenancy deposit protection schemes, the Tenancy Deposit Scheme and mydeposits, are bidding to renew their contracts, and it is possible that additional schemes will be authorised.
In 2016, the custodial scheme, the Deposit Potection Service, will also have to re-tender. This process may also bring more competition to the market place.
Pointing out that three custodial protection schemes are likely to be operating in Scotland from this summer, Harriott will say that this might lead to the liquidation or takeover of some letting agents.
He will claim: “In Scotland – as in England – there has been no requirement to keep deposits in a client account and almost certainly some of this money may no longer be readily available. When the requirement comes to transfer deposits to one of the deposit protection schemes, some letting agents may find themselves in difficulty.”
Harriott also predicts: “Alternative Dispute Resolution could be extended further in the private rented sector to include possession cases, rent arrears and housing disrepair.”
The Property Business Show will also be open again tomorrow. http://www.
Comments
There never was a problem in the first place and TDS was just something for Yvette Cooper and DCLG to introduce as their contribution to New Labour's Nanny state.
No dispute under £500 is worth challenging given the time effort and Tenant bias involved with the process.
@Neil
It's so easy just put a clause in the AST that there is a financial penalty if the last month's rent is not paid and hey presto they pay up the last month's rent. If they do not pay you make the penalty payment! I take it you charge for writing letters for dishonoured payments and this can be added as well and makes it expensive for snotty tenants.
This is a business and none of us normally get paid for the time taken sorting out non payment of rent so charge the buggers. They pay then no work to do - they don't pay and you get paid for chasing the money.
@Neil on 2012-04-19 09:17:21
Agreed.
".....The claim is due to be made today by TDS boss Steve Harriott, speaking at the Property Business Show".
The speech could be called "How to expand your job into an 'empire' beyond its original remit" and pitch it to pre-prepared people.
P.S. Why more schemes that will create more costs? One good one should suffice.
There never was a major problem, but it helps these people to justify themselves with the current low figures. The problem are the few tenants that still do not pay there last month's rent and then make it difficult for the agent to claim it back through the system.