Landlords 'must use TDP schemes'

News Category: Legal

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A lending buy-to-let mortgage lender has urged landlords to sign up to a government-approved tenancy deposit protection (TDP) scheme.

Six months after it became mandatory for landlords to use TDP schemes, Paragon said that those who failed to obey the law faced heavy penalties.

"Most landlords have embraced the new rules and are already happily working with them," commented John Heron, managing director of Paragon Mortgages.

"But those landlords that haven't joined a scheme could find that they are unable to evict tenants if they have caused damage to a property or that they could pay out three times the deposit back if they end up in a dispute."

"Without the protection of a scheme, landlords are leaving themselves open. It doesn't make business sense and it could also mean that the landlord is breaking the law."

Paragon recently found that 48 per cent of landlords thought that TDP had made it more difficult for them to operate.

At the end of August, the NLA reported that more than three out of every four landlords was yet to register with a TDP scheme.

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