I’ve just been reading the Private Landlords Survey 2010 (PLS) which shows that 53% of landlords operating in the private rented sector (PRS) use The DPS to protect tenancy deposits. The PLS is a national survey commissioned by the Department for Communities and Local Government (DCLG). It assesses landlords and letting agents who let or manage private rental properties in England.
The survey looks at every aspect of private letting, from acquiring rental properties to letting them out and maintaining them.
You can read the full report on the DCLG website but I’ve listed some of the key findings relating to tenancy deposits here:
› 91% of all landlords (controlling 84% of all dwellings) in the PRS required a deposit before letting.
› 53% of the landlords in the PRS used the custodial scheme, while 34% used an insurance based scheme and 14% used both types of scheme.
› 99% of letting agents were aware of the authorised TDP schemes and 93% used one.
› 67% of landlords were aware of the authorised TDP schemes and 39% used one.
› 33% of landlords were not aware of the authorised TDP schemes
Whilst it’s great to see so many landlords choosing the custodial scheme to protect deposits, it’s worrying that over a third are still unaware of the schemes.
Even 5 years down the line, there’s clearly still work to be done in educating the lettings industry about tenancy deposit protection. Particularly given the continued rise in rent prices – average private sector rents in England and Wales rose by a further 0.7% in September to a new monthly high of £718*.
Higher rental prices mean higher deposits for tenants to part with so it’s more important than ever that all landlords and letting agents comply with tenancy deposit legislation.
If you’re not currently registered with a scheme and want to find out more, we have plenty of information on our website.
*Source: LSL Property Services