Tenancy deposit protection scheme has been 'extremely effective'
News Category: Industry News
Published: 04-Apr-2008
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The vast majority of tenants have recovered some or all of their deposit money in the past year, thanks to a protection scheme.
According to new figures published by mydeposits.co.uk, a government-authorised insurance-based tenancy deposit protection scheme, throughout the last twelve months there have only been 341 disputes relating to deposits.
Of the more serious disputes, 86 per cent were found in favour of the tenant after being adjudicated through Alternative Dispute Resolution (ADR).
David Salusbury, chairman of mydeposits.co.uk, commented: "After only 12 months, it is quite clear that tenancy deposit protection has clarified the rights and responsibilities of tenant, landlord and letting agent.
"With so few disputes actually being notified and only 20 per cent of these requiring external adjudication, it seems that this kind of self-regulation is proving to be extremely effective.
"The risk to landlords of not complying with the legislation is considerable. Not only would a landlord appear to be totally oblivious to their legal obligations but they will receive a fine amounting up to three times the deposit."
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