Deposit protection costs for letting agents 'will rise'

News Category: Legal

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Letting agents have been warned that the cost of tenancy deposit cover is due to increase, owing to the rising frequency of deposit disputes.

The Dispute Service has revealed that the number of tenancies registered under the Tenancy Deposit Scheme ending in disputes has risen from 1,901 in 2007-08 to more than 12,000 this year.

As a result, the cost of providing the service has risen by 42 per cent, which could soon lead to rising subscription costs for the 2,800 letting agents who are members of the scheme.

The Dispute Service is therefore looking to identify ways in which such tenant issues can be resolved more quickly in order to avoid these escalating costs.

Lawrence Greenberg, chief executive of the body, said: "I hope our members understand that as disputes account for the bulk of our costs, the fewer disputes they are unable to resolve themselves, the more we will have to charge them."

This comes after research from BDRC last month revealed that an increasing number of rented property owners are facing problems with non-payment of rents.

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