Two new custodial services are being launched today by the Tenancy Deposit Scheme and Mydeposits.
Custodial systems mean deposit money is held by the scheme itself for the duration of the tenancy; they are free to use and funded by interest made on the deposits.
“We know agents want more choice when it comes to meeting their legal obligations to protect tenancy deposits. Those who make the switch to can expect a quick transfer of the deposit into our scheme at the start of the tenancy, and an even quicker repayment once the tenancy comes to an end” explains TDS chief executive Steve Harriott.
TDS - a not-for-profit organisation - says it safeguards £1 billion of tenancy deposits in its existing insurance-backed scheme, which was the first of its kind when launched in 2007.
“Today is important for landlords, letting agents and tenants because for the very first time there will be a choice between custodial deposit providers. As the longest serving chief executive officer of all the deposit schemes, I’ve seen first-hand how tenancy deposit protection has helped raise standards” says Eddie Hooker, mydeposits CEO.