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Calls increase for greater alternative deposits regulation…from leading supplier!

Lettings industry figure and former ARLA president Peter Savage, who is now Zero Deposit's spokesman, says sector should face greater regulation.

Nigel Lewis

alternative deposits

Alternative Deposit provider Zero Deposit has appointed former ARLA president Peter Savage to be its industry spokesperson, who has kicked off his tenure in the role by claiming controversially that the industry should be better regulated.

His comments come after The Property Ombudsman this week warned agents that it has heard “the start of murmurings” that complaints about alternative deposits will come to a ‘crescendo’ in the coming six to nine months.

“In the deposit replacement sector, it is crucial that landlords are fully aware of the level and consistency of their cover and that tenants fully understand what they are and are not covered for when they buy a deposit replacement product,” says Savage.

“To ensure this is the case, I firmly believe that deposit replacement should evolve as a regulated marketplace, and I look forward to doing what I can to promote this message and all of the safeguards and protections that regulation brings.”

Katrine Sporle image alternative depositsFollowing property ombudsman (picture, left) Katrine Sporle’s comments, Jude Greer, CEO of Reposit, says agents should ensure their alternative deposit provider is FCA approved.

He also says agents should provide a comprehensive onboarding process for tenants to ensure they understand what they’re signing up for.

“It is important to remember that the Fee Ban actually encourages agents to have a discussion with tenants about the best option for them,” says Greer.

“And when you think about the fear and mistrust within the industry then this is a key step towards fostering that open communication between agents, tenants and landlords.”

 

 

July 12, 2019

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