23 Dec

Tenancy deposit protection scheme hailed as positive move

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.
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