Insurance News Archive
TDS scheme is 'a mystery'
According to new research, mortgage advisers are divided about the benefits of the proposed Tenancy Deposit Scheme (TDS).
The government's scheme is expected to mean that tenancy deposits will be taken into the scheme's custody in an effort to help those tenants who have difficulty recovering their deposit under current practice.
It was proposed as part of the Housing Act in 2004 and was supposed to be implemented on October 1st 2006, but it has recently been postponed pending further discussion and a new launch date will now be announced.
According to buy-to-let lender Mortgage Trust, more than 45 per cent consider the legislation worthwhile, while 55 per cent of the respondents described it as "a hammer to crack a walnut".
There appears to be greater consensus over the lack of information surrounding the scheme, however. According to the survey, 86 per cent believe that there is not currently enough information to enable landlords to prepare.
"Many people in the industry think that this regulation is a step too far, on top of the recently introduced licensing of houses in multiple occupation," said Nicola Severn, marketing manager at Mortgage Trust.
"However, a large minority of intermediaries welcome it. What comes over strongly, however, is that intermediaries lack adequate information on the TDS, and that it needs to be better communicated," she commented.
10 Jul 2006