The Deposit Protection Service has safeguarded the deposits of more than two million tenants since it launched in 2007.
In value, deposits totalling £1.1bn have been protected since tenancy deposit protection became mandatory four years ago – a little over half of that claimed by the TDS and a little more than mydeposits.
DPS users over the period break down into 20,000 letting agents and 250,000 landlords.
The deposit pool currently stands at £550m, representing 720,000 active deposits. The figure compares with the TDS’s current tally of 1.5m deposits protected, almost all by agents – 4,000 branches.
The DPS has had 8,929 adjudications since launch in April 2007 – virtually pro rata with the TDS’s 17,134 disputes, but far less pro rata than the 14,000 disputes handled by mydeposits, which deals with slightly fewer deposits.
Of the DPS adjudications, the large proportion (41.5%) found wholly in favour of the tenant and just 19.1% wholly in favour of the landlord or letting agent, with 39.4% resulting in a split award. Mydeposits has also found that most adjudications favour tenants.
Kevin Firth, director of The DPS, said: “We’re proud to be delivering our protection services to such a significant volume of tenants, landlords and agents in England, Wales and even Scotland. It’s particularly impressive as we did not have an existing member base, so it has been great to see so many landlords and letting agents positively choosing to safeguard their tenants’ deposits with us over the years.”
He also revealed that in the last year, The DPS has sent 85,000 text messages to tenants, prompting them to log on and reclaim their deposits, resulting in £2m of previously unclaimed deposits being returned.
Firth added: “It’s important that we keep innovating in our use of technology to make deposit protection as easy and accessible as possible. We use SMS, we blog and we Tweet to help ensure that people are aware of their responsibilities when it comes to deposits.
“Continuing to increase awareness is particularly important at the moment as – in the middle of a private rental sector boom – more and more people are finding themselves thrust into the role of reluctant landlord.
“We’re still registering around 200 new landlords a day, so I’m confident that the message is hitting home.”
The DPS is the only scheme that physically protects deposits by retaining them in an approved bank account for the duration of a tenancy on behalf of tenants, landlords and letting agents.
The other two schemes are insurance-backed and do not remove the money out of the system, leaving landlords and agents free to use the money for their own cash-flow purposes unless they choose to ring-fence it in a client account.
In Scotland, where tenancy deposit protection has only just been made law, only custodial schemes such as the DPS will be allowed to operate – something that came as a surprise to the insurance backed schemes.
The DPS was also the subject of a Parliamentary question this week to housing minister Grant Shapps, on the funding of all three of the deposit organisations. See next story.
Comments
Thats because only 19% of landlords have a legitimate claim, they think they have the right to expense everything against a tenants deposit and historically were able to get away with it -
Now with someone independent involved, they are finding that tenants claims are legitimate - Sorry the truth speaks for itself
We as LL's had to go through ADR 'cause tenant left the property with no forwarding address. Kept marking it as in dispute but never giving us any evidence of cleaning bills.
Before they had it the property was lovely, cream carpets, beautiful range cooker and all fully professionally cleaned. They left it after we forced a monthly cleaning regime and inspection because it was filthy, surprise, surprise they put in their notice after one month of this. Left it in a disgusting, smelly state and unlettable. We, as LL's picked up the bill and went to ADR, DPS seemed to lose most of our evidence and did not forward it to ADR, ADR seemed blind to the photographs and text. Tenants broke every clause in the contract, including changing utility providers, which we have just learnt about. Wonderful ADR found in favour of tenants. We are moving out of this now, too costly to us. Hope tenants will no longer find a decent place to destroy.
No mission impossible you do not. You may think you do but if the tenant wants to go to ADR and the landlord refuses and opts for Court if the tenant states this (if the Landlord still wastes his Court fee) then the Judge is highly likely to say that as ADR is available the parties have not exhausted all avenues and send them back to ADR.
If the landlord then oloses or is unhappy he can go to Court afterwards. A common missconception is that ADR is binding, it is in the sense of the dispersal of the money but does not prevent the Landlord then going to Court. That though will be a waste of time as unless he can prove an error at law the Judge will assume the ADR has been thorough and fair.
A big assumpotion sometimes I grant you.
Blu Tac clauses, like picture hooks, will not survive 21st century scrutiny as it is the tenant's home and if the OFT see it they'll strike them out under UCT anyway.
The right comments here are those reminding whose money it is - the Tenant's unless proven otherwise with satisfactory evidence.
With 9 disputes a day referred is anyone surprised that the process is turning out the percentage results it is?
Suprise suprise!! Has anyone here actually read the prescribed information? You have the option to cut out the TDS and go straight to court. Same as before. We always say that we wont deal with the TDS, court action only. Suprising how no tenant wants to do that. Hey Presto, instant results and no hike in premiums.
I agree the inventory is king until the DPS get their hand on a dispute. I had one where the clause 'can not use blue tack to put posters up' was ignored and when the matter was disputed by yours truly the DPS found in favor of the tenant not paying to redecorate that room which they had agreed to previously as they (the DPS) considered it fair wear and tear. They just completely ignored the clause.
The DPS also say that in returning a deposit to a tenant we only need a verbal instruction from the landlord to do so but they do not work in this way, they have to have instructions in writing or electronically from both sides. One rule for them and one rule for us.
A local agent here closed down and one landlord was in the middle of claiming some money back for damages and because the DPS could not contact said agent the whole of the deposit was returned to the tenant. Outrageous.
So pompous Peter what do you think of that?
Hi Ash,
I would suggest you go to one of the DPS ADR seminars well worth the £50.
Then you will understand why only 19% goes to the Landlord. In most cases its because LL's don't have a case, or can provide the proof to win the case. Mainly, because they cant be bothered to do or pay for an inventory, along with check in's or check out reports.
Don't forget the money is not the LL's play money or betterment money, the money belongs to the tenant unless proved otherwise. AS is a court of law INNOCENT unless PROVED otherwise.
The ADR seminar was an eye opener for me, I now understanding the system much more. The whole crux of the matter is in the previous paragraph.
Hi Ash,
I would suggest you go to one of the DPS ADR seminars well worth the £50.
Then you will understand why only 19% goes to the Landlord. In most cases its because LL's don't have a case, or can provide the proof to win the case. Mainly, because they cant be bothered to do or pay for an inventory, along with check in's or check out reports.
Don't forget the money is not the LL's play money or betterment money, the money belongs to the tenant unless proved otherwise. AS is a court of law INNOCENT unless PROVED otherwise.
The ADR seminar was an eye opener for me, I now understanding the system much more. The whole crux of the matter is in the previous paragraph.
(41.5%) found wholly in favour of the tenant and just 19.1% wholly in favour of the landlord or letting agent,
I always said DPS were in favour for the tenants
Not surprised at all. As a TDS subscribing member with zero, not one dispute since inception I might add, I am heartily sick and tired of Landlords guilty of blatant betterment. They get 10% a year off their tax bills for wear and tear and then have the cheek to try and use the tenants deposit as a new for old or second hand insurance policy. ALWAYS have a top notch INDEPENDANT inventory and then there is only black or white issues, no grey area in the middle. Tenants are a nightmare over cleaning thinking that properties are like hotels but if ts was professionally cleaned when you took it, you give it back professionally cleaned, simples! I enjoy banging heads together at the end of a tenancy as it prevents unwanted disputes that increase your subs. Just do your job properly and it saves a lot of time and stress!