News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the February / March 2002 issue RPI news archive

Falconer says 'strong case' for compulsory deposit scheme - February / March 2002

Slow take up of the Tenancy Deposit Scheme 'makes a strong case for legislation on tenancy deposits', Transport, Local Government and the Regions Minister Lord Falconer has told the House of Lords.

Answering questions from Joseph Rowntree Foundation Director Lord Best, he said the Government would support the scheme for a further two years 'to establish, first, the basis for a self-financing national voluntary scheme and, secondly, the extent to which membership of this or similar schemes would need to be backed up by legislation'.

Started two years ago, the Tenancy Deposit Scheme is being piloted in five pilot areas where 17,000 tenancies are covered. Two models allow landlords either to hold deposits in a nominated interest bearing account or to take out an insurance bond. Both include a dispute resolution procedure.

Asked if 'it is likely that a mandatory scheme will become necessary in due course', Lord Falconer said 'we should see what are the effects of the coming two years. It is extremely important to encourage as many landlords as possible to join the scheme'. Likewise a decision on whether or not it would be necessary 'to register landlords in order to have an effective compulsory deposit scheme' would have to await the outcome of the pilots and of consultation.

'We are continuing with the scheme for another two years. There are signs that the slow start is now leading to a process where more people are taking up the scheme. I agree that giving more publicity to this kind of scheme ­ including to landlords, who get a real benefit from it ­ will increase take-up still further', he told the Lords.
 

other artilces from the February / March 2002 issue

• Hostility causes brain drain
• Government admits weekly housing benefit changes
• Fitting way to avoid stamp duty penalty
• House prices buoyant after September setback
• In search of TV stars
• Falconer says 'strong case' for compulsory deposit scheme
• Default tenant database launched
• Do it yourself conviction
• In brief