Deposit protection scheme does not mean landlords lose control

29 2008
A leading figure in a government-authorised deposit protection scheme has today told landlords that they do not have to lose control of their deposits.

The website mydeposits.co.uk is the only provider of its kind specifically designed to protect deposits rather than pass them on to a third party.

And now chairman John Salusbury has sought to highlight the benefits of the scheme, which currently protects around £200 million worth of tenants' deposits.

He said: "Just because a landlord now has to protect their tenants' deposits, it doesn't mean they have to hand over the cash to a third party.

"Recent figures have shown that this type of self-regulation for mandatory tenancy deposit protection is working well with only 341 cases being notified to the scheme.

"Landlords who fail to comply with the tenancy deposit protection legislation face considerable risks.

"They could be forced to pay a fine of up to three times the deposit amount and limits will be placed on their ability to seek possession for as long as the deposit remains unprotected."

According to the government, around a million tenants now have protection as a result of the scheme, which offers landlords a simple 'pay-as-you-go' service.

In the past, deposits have been placed in bank accounts or held by letting agents on behalf of a landlord.
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