The Tenancy Deposit Scheme has moved to clarify its position in response to comments made by property expert Ajay Jagota.
Mr Jagota, founder of sales and lettings firm KIS, has called for more transparency over the whereabouts of £1.4bn being held in the Tenancy Deposit Scheme.
Jagota stated that, ‘organisations not being 100% transparent about where this money goes, what it is being used for and who is benefitting does nothing to improve the reputation of our industry, which ultimately can only be improved with greater transparency, particularly when it comes to tenants’ money.’
Responding to this comment, Mr Steve Harriott , CEO of the Tenancy Deposit Scheme, told Landlord News:
‘The Tenancy Deposit Scheme would like to make it clear that £1.4billion worth of deposits we protect is of course retained in the client accounts of letting agents and landlords. We operate an insurance backed scheme, so we protect deposits to this value, but the money is held directly by the agents and landlords. The headline used in the article is misleading and mischievous.
Since April 2016 we also operate TDS Custodial where agents and landlords transfer the deposits to us for safekeeping.’