'Wake-up call' on tenancy deposit protection

News Category: Legal

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Letting agents have been handed a wake-up call to insure they are affiliated with a regulatory body under the Tenancy Deposit Scheme (TDS).

From April 6th, protection will be withdrawn for all unregulated letting agents, the TDS confirmed today.

This means all landlords need to ensure their letting agents are members of accredited organisations, which include Arla, the NAEA and Rics.

Deposits can also be protected under the government's authorised deposit protection schemes, which include mydeposits.co.uk and The Deposit Protection Service.

The National Approved Lettings Scheme (NALS), the government's accreditation organisation, said lettings business need to adhere to the legislation to ensure optimum levels of trust and support are available for both landlords and tenants.

Caroline Pickering, independent chair of the NALS, commented: "This recent development will surely come as a wake-up call to all firms who are not part of any regulatory body."

Landlords and letting agents could ensure they are legally compliant by investing in property software.

How to stay legally compliant with letting agent software.