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News from the Residential Property Investor, the bi-monthly magazine for RLA members Other articles from the March / April 2006 Issue |
Deposit schemes – still waiting to hear
March / April 2006 Issue
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THE PUBLICITY machine spreading information about the new Tenancy Deposit Schemes, due to come into force on October 1, appears to be in danger of falling behind its own deadlines. According to the Office of the Deputy Prime Minister’s own deadlines, an “e-mail advice line” (sic) should have been opened for landlords and letting agents between last November and this April, while articles for the trade press should have been written and submitted. RPI was contacted in early January and asked to supply deadlines. The ODPM said it would be unable to meet our January copy deadline, but that it would be able to meet our deadline for this issue. However, we were contacted again and told that it would still not be possible to supply information in time, which would apparently refer landlords to a website. According to the ODPM’s own briefing paper, to implement the scheme “it is essential that tenants, landlords, letting agents and other stakeholders are fully prepared”. An estimated 700,000 landlords and around 1.5 million shorthold tenancies will be affected by the new regime. |
A second phase of publicity is due to run between May and September. A third phase, which will run from this October to October 2007, will carry out an “impact evaluation to measure campaign activity”. Despite the apparent lack of publicity so far, the new rules for Tenancy Deposit Schemes will, from this autumn, make it illegal for landlords to accept tenants’ deposits unless they belong to a recognised scheme. Choices will be a custodial tenancy deposit scheme, coming into force this year, whereby a government appointed agency will hold all deposits where a landlord has not joined an insured scheme. Both the custodial and the insured schemes will have to contain a dispute resolution process. |
Other articles from the March / April 2006 Issue