RESIDENTIALlettings
DISPUTES – A MAJOR PROBLEM?
Disputes as % of protected deposits
2008 0.05% 2009 0.52% 2010 1.08% 2011 0.82% 2012 0.85%
2008 58
Tenant Agent/Landlord 42
2009 57.24 42.77 2010 54.86 45.14 2011 50.03 49.97 2012 49.56 50.45
Source: TDS Annual Statistical Digest In 1998, the National Association of Citizens Advice Bureaux
reported in Unsafe Deposit that 48 per cent of tenants surveyed had a deposit unreasonably withheld, and only 1 in 6 succeeded in retrieving their money. However, fears held by landlords and agents of a deluge of disputes have not materialised. Five years on, the number of disputes remains consistently low, not increasing much above 1 per cent of protected deposits. Disputes are raised almost equally by landlords/agents and tenants; of the total amount of disputed deposits adjudicated by TDS, 53.8 per cent was awarded to tenants, and 46.2 per cent to agents or landlords.
THE FUTURE OF DEPOSIT PROTECTION It is clear that the government remains committed to tenancy deposit protection, and will be procuring new insurance schemes from April 2013. The Localism Act 2011 closed the loopholes enabling landlords to escape the required timeframes to register deposits, and strengthened the penalties for not doing so.
TO In Scotland tenancy deposit protection will be introduced in July
2012 with three custodial schemes competing in the market place, including SafeDeposits Scotland, a not for profit consortium with the Tenancy Deposit Scheme as its lead partner. In Northern Ireland the Assembly is likely to introduce regulations in 2012 to bring in tenancy deposit schemes in 2013. There is no doubt that tenancy deposit protection has been a
success, but there is more work that we intend to do. Although levels of compliance with deposit protection legislation have been suggested at 92.4 per cent a lack of reliable data means this has to be treated with caution. TDS is continuing to raise awareness amongst all parties of deposit protection and how to avoid disputes, and to drive home the importance to tenants and landlords of using regulated letting agents.
Do you have any views to share?
www.propertydrum.com/articles//tds0712
WHO RAISES DEPOSIT DISPUTES (TDS, 2011-2012)
Tenants Agents Landlords
52%
12% 36%
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www.propertydrum.com PROPERTYdrum JULY 2012 57
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