Posts with tag: deposit protection

Rise in Tenancy Deposit Claims due to Landlords not Using Deposit Protection Schemes

Published On: June 12, 2018 at 9:21 am

Tags: deposit protection,landlord law,landlord responsibilities

There has been a recent surge in claims being made by agents on their professional indemnity insurance in relation to tenancy deposits.

Lonsdale Insurance Brokers, specialist insurers for estate agents and lettings agents, believe that such claims are arising from landlords not putting deposits into a deposit protection scheme or providing the prescribed information for the deposit scheme.

In general, a tenant who makes such a claim, often prompted by a no win, no fee ‘ambulance chaser’ firm, will end up winning three times the amount of their deposit. When this happens, the landlord will take this claim to the letting agent, who then in turn claims on their insurance.

Law firm DAC Beachcroft has seen 25% of its claims relating to deposits not being lodged on time during the first quarter of 2018. Apparently, this figure only came to 3% over the entirety of last year.

To prevent such issues from arising, as a landlord you should make sure you are fully aware of what information needs to be provided to a tenant. If you do not, there can also be other consequences, such as the forfeit of any right to serve a Section 21 notice.

At the outset of a tenancy you must provide:

A gas safety certificate
An Energy Performance Certificate (EPC) – Remember, this now has to show an energy efficiency rating of ‘E’ or above!
A copy of the latest government guide: How to rent The Checklist for renting in England
Confirmation that the tenant’s deposit has been protected, and that the prescribed information has been provided

The best way of ensuring nothing is missed out, or that your tenant cannot claim that this is the case, is by putting together a checklist and getting all new tenants to initial each page and sign at the end, agreeing that all the relevant information has been provided. It is also important to keep a copy for your own reference.

The DPS Donates £19,000 to Charities in Brighton and Devon

Published On: March 20, 2017 at 11:36 am

Author: Em Morley

Categories: Finance News

Tags: charity,deposit protection,homelessness,tenancy deposits

The Deposit Protection Service (DPS) has donated £19,000 to charities in Brighton and Devon.

A home and its grounds in Honiton, Devon, which are run by charity SeeAbility, are being refurbished following a £7,993 donation.

The DPS Donates £19,000 to Charities in Brighton and Devon

A further £11,000 is being used to fund specialist support from YMCA DownsLink Group – Youth Advice Centre in Brighton and Hove.

The Head of Tenancy Deposit Protection at the DPS, Daren King, comments: “The DPS has given over £200,000 to good causes since we established our charity fund in 2014.

“We believe that everyone has the right to live life to the full, and we were really excited to visit Devon to see how our donation is helping SeeAbility’s fantastic work.”

He adds: “We’re also delighted to be supporting YMCA DownsLink Group – Youth Advice Centre’s fantastic work in helping LGBT young people find a home in Brighton and Hove.”

SeeAbility aims to support people with a combination of sight loss and visual impairment, learning difficulties and physically difficulties, to reach their aspirations, and has over 20 residential homes and supported living facilities across the south of England.

The Partnership Executive of SeeAbility, Rebecca Compton, says: “The paved path that encircles the property in Honiton has become uneven, creating great difficulty for people with sight loss and wheelchair users.

“We’re really grateful to the DPS for this generous donation, which has helped us repair the path and undertake other vital improvements that will help our residents live independently.”

YMCA DownsLink Group – Youth Advice Centre is a “one-stop shop” for advice and information for young people aged 13-25 in the City of Brighton and Hove.

The Advice Services Manager at YMCA DownsLink Group – Youth Advice Centre, Julia Harrison, explains their cause: “LGBT young people account for 13% of the total number of clients accessing our housing service, with a 50% increase in transgender clients since April 2016.

“The DPS’s generous donation will help reduce youth homelessness and empower LGBT young people to be aware of their rights and responsibilities as tenants.”

The DPS’s fund assists charities that support the homeless and those who need help to live independently, and good causes across the UK have benefitted from donations from the DPS and its sister organisations, the Letting Protection Service Scotland and Northern Ireland, over the last three years.

Charities in the housing sector can apply for funds via this link: www.depositprotection.com/charity

Applications for the next round of awards must be submitted by 31^st March 2017.

Tenancy Deposits in London Hit the Highest Level Ever

Published On: January 31, 2017 at 11:07 am

Author: Em Morley

Categories: Property News

Tags: deposit protection,landlord law,tenancy deposits,tenant deposits,tenants

Average tenancy deposits in London have hit the highest level ever, while the typical deposit in England and Wales continue to hover just below £1,000, according to the latest figures from The Deposit Protection Service (The DPS).

Tenancy Deposits in London Hit the Highest Level Ever

The firm’s Tenancy Deposit Ratings show that the average tenancy deposit between October and December 2016 stood at £970.18.

However, properties with London postcodes set a new all-time high during the period, with tenancy deposits averaging £1,831.14 – more than double that for areas outside of the capital (£883.21).

Julian Foster, the Managing Director of The DPS, comments: “It’s important that landlords have protection against damage and other problems that can arise when they rent out property, but tenancy deposits can be demanding sums for tenants to raise when they move.

“However, both parties can have peace of mind over the money when it is protected with The DPS, with our secure and easy processes backed up with a free, impartial dispute resolution service on the rare occasions it is needed.

“The DPS is the UK’s largest protector of tenancy deposits, and we’ve been entrusted with over 4.7m since launching a decade ago.”

Landlords, remember to stick to the law surrounding the protection of tenancy deposits: /landlords-guide-tenancy-deposits/

While The DPS’s figure for October to December represents a £154.40 increase on July to September, it is just 30p lower than April to June, with the third quarter typically experiencing a dip, as students return to rental accommodation ahead of the new academic year.

The average tenancy deposit for the fourth quarter of 2016 also represents a £21.88 rise on the same period in 2015 (£948.31) and a £117.81 increase on the fourth quarter of 2014 (£852.37).

The research found that Sunderland has the lowest tenancy deposits in England and Wales, with the average cost in the SR postcode less than three times lower (£490.13) than that in London.

Have you put your tenancy deposits up over the past few months?

Majority of Tenants Believe Their Deposits aren’t Protected in a Scheme

Published On: August 15, 2016 at 10:57 am

Author: Em Morley

Categories: Landlord News

Tags: deposit protection,deposit protection scheme,tenancy deposits,tenant deposit protection

Majority of Tenants Believe Their Deposits aren’t Protected in a Scheme

Worryingly, a new report has found that the majority of tenants (70%) believe that their deposits are not protected in a scheme and are instead kept by their landlord or letting agent.

The study, conducted by PropertyLetByUs.com, also found that just 50% of tenants have ever received confirmation that their deposit is held within a protection scheme, while three quarters are concerned that their landlord or agent will try to keep the deposit at the end of the tenancy.

It is estimated that £3.2 billion worth of tenants’ deposits are being held within the three Government-approved protection schemes, or by a landlord or letting agent.

The Government intends to reform the rental deposits system and is looking at what it can do to make sure that tenants have “proper consumer protection, including protection from landlords who withhold deposits unreasonably”.

The legal requirement for landlords or letting agents to protect tenancy deposits in an approved scheme was introduced in April 2007, as part of the Housing Act 2004, for all Assured Shorthold Tenancies (ASTs) in England and Wales where a deposit is taken. The law was created to raise standards in the lettings industry and ensure tenants are treated fairly at the end of their tenancy.

The Managing Director of PropertyLetByUs.com, Jane Morris, says: “Tenants are right to be concerned. While deposit protection schemes protect tenants, there is little or no policing to ensure landlords and agents are compliant. Our research shows that tenants simply don’t trust landlords and agents with their deposits, which is disappointing in light of the fact that the schemes have been around for many years. Agents and landlords have a legal obligation to put deposits in one of the three approved schemes within 30 days of receiving it.

“There definitely needs to be reform, and hopefully the Government will introduce new measures that will ensure that tenant deposits are fully protected.”

Landlords, remember that you must fulfil your legal duty to protect your tenants’ deposits within 30 days of receipt and provide them with the prescribed information.

Ensure a positive rapport with your tenants and successful lettings business by always keeping up with your responsibilities. Find out about the latest news and updates in the private rental sector at Landlord News.

Will the Tenancy Deposit be a Thing of the Past?

Published On: July 24, 2016 at 8:44 am

Author: Em Morley

Categories: Landlord News

Tags: deposit protection,deposit protection scheme,fair wear and tear,tenancy deposits

Every year, £3 billion worth of tenants’ money is registered with one of three deposit protection schemes, as is legally required of landlords. But is there an alternative for savvy investors?

In most cases, a tenant’s deposit is handed back to them – less than 1% of the money is disputed. Reposit, a new service that could help landlords, believes that tenancy deposits not only put a financial strain on tenants in an increasingly expensive rental market, but also breed distrust.

“Ten years ago, you would have been laughed out of the room if it was suggested the idea that people would allow complete strangers from across the world to use their homes for accommodation while they were on holiday,” the firm notes. “Now, Airbnb has pioneered the sharing economy model and proved that, with a few exceptions, we can trust people.”

This led Reposit to ask the question: “So why do landlords take a deposit?”

It is generally understood that if a landlord holds a tenant’s deposit, the renter will be more inclined to look after the property.

However, Reposit has a different idea.

The new, innovative product seeks to abolish the need for a landlord to take a tenancy deposit.

The CEO of Reposit, Curran McKay, explains: “A tenant moving into their new rented home must find a month’s rent up front – six weeks’ rent as a holding deposit – as well as letting agency fees. On the other hand, a landlord wants some assurance they will be covered in the worst-case scenario. We believe trust, with a little help from Reposit, is all that it takes.”

So how does the product work?

Will the Tenancy Deposit be a Thing of the Past?

A tenant pays one weeks’ rent to Reposit as a fee, saving significantly on the average six-week deposit.
If the tenant damages anything during the tenancy (save for fair wear and tear), or has unpaid rent arrears or cleaning costs at the end of the tenancy, they will be liable to pay this amount up to the maximum of six weeks’ rent to Reposit.
Reposit will then pay the landlord or appointed agent the full owed amount.
If there is a dispute, the firm has an independent Alternative Dispute Resolution (ADR) specialist to look at the case, using the same professionals as the three Government-approved schemes.
If the tenant breaks anything, they pay for it. Simple!

Under the current deposit system, landlords must, by law, register the tenant’s deposit within 30 days of receipt, or face a fine of three months’ rent. This can also cost the landlord time and money.

Under Reposit’s system, landlord would not need to take a deposit, while still being protected with cover equal to six weeks’ rent as standard.

For more information, call Reposit on 020 3868 4070 or visit https://getreposit.uk.

The Deposit Protection Service Donates £20,000 to Housing Charities

Published On: July 1, 2016 at 8:46 am

Author: Em Morley

Categories: Property News

Tags: deposit protection,homelessness,housing charity,tenancy deposits

The Deposit Protection Service (DPS) has donated a further £20,000 to three housing charities across England.

The UK’s largest provider of tenancy deposit protection has awarded £10,000 to Calderdale Smartmove in Halifax, £5,000 to Bosco House in Merseyside, and £5,000 to No Limits in Southampton.

The Head of Tenancy Deposit Protection at the DPS, Daren King, says: “We’re really glad to be able to support these three fantastic charities, all of which provide really important assistance to local people.

The Deposit Protection Service Donates £20,000 to Housing Charities

“Since the launch of our charity fund, the DPS has given £160,000 to housing charities, and we’re delighted to continue to fund such crucial work.”

The donation to Calderdale Smartmove will help provide secured bonds to private landlords and house 23 individuals and families.

The charity’s Craig George comments: “For many people, finding long-term accommodation is extremely challenging, and by giving more individuals and families a helping hand, we can make sure more people have somewhere safe and comfortable to live.

“We’re really grateful to the DPS for the funding, and it’s great to work with organisations that share Calderdale Smartmove’s ethos.”

Bosco House is a small charity that provides bed spaces to single, homeless men, many of whom have substance abuse problems, mental health issues and an offending background. The DPS’ donation will help open a new hostel in Sefton, which will house 13 homeless young people.

James Heller, a senior worker at Bosco House, reacts to the donation: “We are extremely delighted and grateful to the DPS for the funding provided for our new hostel.

“The funding provided will go a long way towards providing a safe and secure environment for our clients, and will contribute to rebuilding lives and combating homelessness in Merseyside.”

Southampton’s No Limits aims to relieve and prevent suffering caused by mental and physical ill health, or by social or economic circumstances among local young people, with an information, advice and counselling service.

The DPS’ donation will fund Homemaker Volunteer courses designed to teach skills that will improve the likelihood of young people staying in their homes, such as cooking on a budget, cleaning and money management.

The Team Leader for Floating Support at No Limits, Paul Salter, says: “We’re really grateful to the DPS for the money, which will really help us empower young people to truly enjoy their new homes.

“Some of the young people we work with have never had the welcoming, comfortable home that many of us take for granted, and we want these young people to feel like they have a home of which they can be proud.”

The DPS first established a fund in 2014 to assist charities that support the homeless and those who need help to live independently.

Many charities across the country have benefitted from donations from the DPS over the past two years.

Housing charities can apply for funds at www.depositprotection.com/charity. Applications for the next round of donations must be submitted by 30^th September 2016.