Landlords have more choice over how to safeguard tenant deposits after changes in the market at the start of April 2013.
The law about protecting deposits has not changed – just the number of firms offering the service.
Two new services have joined the market – both insurance-backed custodial schemes – Deposit Protection Service Insured, an alternative the Deposit Protection Service and the Capita Tenancy Deposit Protection Scheme.
Both new services allow letting agents and landlords to keep hold of deposits, while protecting the cash for tenants.
The choice for placing deposits on protection now extends to:
- Deposit Protection Service
- MyDeposits
- Tenancy Deposit Scheme
- Capita Tenancy Deposit Protection
- Deposit Protection Service Insured
Landlords and letting agents in Northern Ireland can also access the Mydepsoits scheme for the first time since April 1.
With all the services, deposits must go on protection within 30 days of the start of the tenancy.
Holding deposits do not need protection unless they become a tenancy deposit at the start of a letting agreement.
The new service, Capita, is run by a business data management firm with 46,500 employees at more than 350 sites across the UK and Europe. Other brands under management include the Gas Safe Register of qualified gas engineers.
- For unbiased advice about tenant deposit protection, go to the official gov.uk web site
Green Deal law change
Meanwhile, from April 1, landlords in Scotland must give tenants a Green Deal energy assessment with the energy performance certificate when advertising a private property to let.
This is only a legal requirement in Scotland, although the Green Deal started for landlords in England and Wales this month as well
- More information about the new Scottish law is on the Energy Saving Trust web site
