Tenancy Deposit Scheme 'growing fast'

Rental property seekers in London and across the UK will be encouraged by news of a rise in deposit protection, thanks to a government scheme that is obliging registered landlords to guarantee swift repayment of tenants' money.

The Tenancy Deposit Scheme claimed that it had seen a huge rise in uptake over the last few months, as a new website and new obligations made it more likely than ever that working through a registered landlord or Letting Agent would provide protection on up-front deposit payments.

From mid-October to mid-January the net value of deposits protected by the scheme had risen from around £300 million to near on £400 million, meaning that as many as 596,343 tenants in 391,790 tenancies are now covered.

Chief executive of the scheme Lawrence Greenberg said: "This is a huge growth in the number of tenancies and the amount of the deposit money covered by our scheme. It reflects a much greater understanding of the legal obligations on landlords.

"This is in addition to the number of tenancies coming on stream or being renewed. It also reflects the simplicity of the scheme. It requires no effort by landlords or tenants who use lettings agents who are members of the scheme."

He added that while the scheme was born nearly four years ago, it has witnessed a swell in demand since April 2007, when deposit protection became mandatory for all landlords.

Published 22nd January, 2008

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