Letting agents unhappy about deposit scheme price increase
News Category: Industry News
Published: 27-Jan-2010
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Letting agents have reacted angrily to the Tenancy Deposit Scheme (TDS) increasing its charges.
Under the new pricing structure, the minimum subscription fee for a letting agent will rise from £583 to £750.
Letting agents will also have to pay for each dispute with a tenant they ask the TDS to resolve.
Ivor Dickinson, managing director of letting agent Douglas & Gordon, said even though the company managed most disputes themselves, the new prices mean they will be forced to pay £36,337 each year.
He said: "The 500 per cent increase in costs for the TDS are exorbitant, monstrous and hardly in keeping with the biggest global recession in living memory. Something must be done."
The TDS defended the price increase, with chairman John Hornsey claiming the price remained competitive.
Mr Hornsey said the new system was fairer as letting agents would be charged according to how much they used the TDS, rather than all agents paying a flat fee.
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