Insurance News Archive
TDS enforcement date announced
Roll out of the government's Tenancy Deposit Scheme (TDS) is now planned for April 2007, a delay of six months, it has been announced.
The controversial proposal for a compulsory scheme to hold private tenants' rental deposits has been likened to using a "hammer to crack a walnut" by about half of mortgage advisers, according to a survey by Mortgage Trust.
However, Citizens Advice has said that it is "disappointed" with the delay. Plans for the TDS were prompted by a report from the charity in 1998, Unsafe Deposit, and a subsequent campaign with the charity Shelter to initiate such a scheme.
According to Citizens Advice, one in five private tenants has problems with deposits being unreasonably withheld.
"There can be no doubt that this important reform is needed urgently," said Citizens Advice housing policy officer Liz Phelps.
"Over 1.5 million private tenants stand to benefit from the new measures on how tenancy deposits are held in future, so it is disappointing that the planned start date for the scheme has been delayed by six months."
She continued: "But the main priority now must be to use the time before the scheme comes into force effectively to ensure that all tenants and landlords are aware of the changes and their new rights and responsibilities under the scheme."
According to the research by Mortgage Trust, the vast majority of advisers surveyed (83 per cent) felt that there is not currently enough information about the scheme to allow landlords to prepare.
19 Jul 2006