23
Dec
Tenancy deposit protection scheme hailed as positive move
The tenancy deposit protection scheme should have a beneficial
effect on relations between tenants and landlords, an expert has
said.
Speaking about the scheme, which came into force in April 2007, the
editor of online investor community Landlordzone.co.uk Tom
Entwistle stated: "It should have a positive effect on
[landlord-tenant] relationships because it takes the deposit out of
the landlords' hands."
However, he noted, this does not mean that the two parties would
often be at loggerheads in the days before the new law was
introduced.
Instead, Mr Entwistle said, the arrangements usually "worked quite
well".
The tenancy deposit protection scheme obliges landlords to put
deposits into the hands of an accredited third party, which will
hold these in trust and rule on any disputes that could
arise.
According to Department of Communities and Local Government
figures, the first year of the scheme saw £885 million being
deposited this way.
