Landlords 'avoid TDS by not taking deposits'
News Category: Legal
Published: 22-Aug-2007
A large proportion of landlords in the UK are getting around the tenancy deposit scheme (TDS) simply by not asking for a deposit from renters.
According to Adrian Thompson, director of the Guild of Residential Landlords, around 80 per cent are not asking tenants for an initial downpayment in order to avoid the deposit scheme.
There are two types of TDS; custodial sees landlords pay the deposit into the scheme until the tenancy ends, while in insurance-based schemes landlords retain the deposit but pay a premium.
"Without a shadow of a doubt custodial tenancy deposits are more popular than their insurance counterparts," said Mr Thompson.
"The most popular outcome altogether is that landlords are choosing not to take a deposit … by far and away that outstrips it all."
He added that of the 20 per cent who are adhering to the TDS plan, 80 per cent are choosing the custodial option.
