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Tenancy Deposit Scheme Update
Tenancy Deposit Scheme Delayed Yet Again
The Tenancy Deposit Scheme, which had been due to come into force on June 1 this year and was put back until October 1, has been delayed yet again.
The new date for implementation is likely to be April 1 next year.
Insiders say that the timescale for launching the scheme was simply too short, particularly since the tendering process – by which private organisations bid to run Government-approved schemes – is not due to finish until the end of August. In addition, the official consultation process has thrown up a string of concerns on the part of landlords and letting agents.
A spokesman for the Department of Communities and Local Government said that the two most prominent concerns were: what happens to tenancy deposits when the tenant had been in arrears with the rent; and what would be the position regarding tenancy deposits when the property has been abandoned.
Under the terms of the Tenancy Deposit Scheme legislation, private landlords will be debarred from handling and holding tenants’ deposits unless they belong to a Government-approved scheme. There will be two types – an insurance backed scheme, and a custodial scheme. Landlords would have to give all new tenants full details of the scheme to which they belong.
For an update on this important subject, read Residential Property Investor’s July/August edition.
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