There is now a wider choice of schemes for landlords and lettings agents to protect their tenants’ deposits.
Until now, the Deposit Protection Service (DPS) was the only choice for those wanting a custodial service, where the whole deposit is handed over to the scheme for the duration of the tenancy, with no fees attached. The custodial schemes are funded entirely from the interest earned from the deposit pool.
Now two new custodial services have been launched by the Tenancy Deposit Scheme (TDS) and Mydeposits, to run alongside their insured schemes which enable landlords or agents to retain the deposit during the tenancy but in return pay a protection fee to the scheme.
Steve Harriott (left), Chief Executive at TDS, said, “As the UK’s leading provider of tenancy deposit protection, we know that landlords and agents in the private rental sector want more choice when it comes to meeting their legal obligations to protect tenancy deposits.
“The launch of TDS Custodial now gives them that choice, providing a fast, free and secure service that removes the hassle from protecting their tenant’s money. Those who make the switch to TDS Custodial 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. It really couldn’t be simpler.
“And the change needn’t be complicated either. We want to make the move to TDS Custodial hassle-free too, with our award-winning customer service team here to ensure the transition to TDS Custodial is as easy and smooth as possible.”
The new custodial services are important for landlords, letting agents and tenants because for the very first time there is a choice between custodial deposit providers, says Eddie Hooker, Mydeposits CEO, “Today is an important step forward 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 and addressed the implication that landlords and agents unfairly withhold deposits.
“We’ve used the experience we’ve gained since 2007 and held numerous focus groups with everyone who uses our scheme in order to create this new service. We have further enhancements planned throughout 2016 that will make deposit protection with mydeposits even quicker and easier”. There are separate tenancy deposit protection schemes operating in Scotland and Northern Ireland.
The three appointed schemes in Scotland are: Letting Protection Service Scotland, Safe Deposits Scotland and Mydeposits Scotland.
In Northern Ireland, the schemes are: Deposit Scheme Northern Ireland, Mydeposits Northern Ireland and Letting Protection Service NI.