Rise in Demand for Deposit Dispute Resolution

The Tenancy Deposit Scheme says it predicts a leap of 84% in the number of deposit disputes it will resolve this year.

By the end of last month, 100 cases had already been resolved, against 131 cases resolved throughout the whole of 2005.

Lawrence Greenberg, Chief Executive of the TDS, says: “People are increasingly aware that we deal with deposit disputes quickly, independently and fairly”

“Agents in particular now have a greater understanding of the legal requirements that will come into force and with which they will have to comply.”

These new requirements will make membership of a deposit protection scheme mandatory for all landlords and their agents in the private rented sector.

The Spring survey carried out for The Dispute Service, who operate the Tenancy Deposit Scheme, showed a sharp rise in awareness of the forthcoming mandatory requirements. Well over two thirds of landlords were shown to be aware of the legislation with various degrees of understanding.

Greenberg adds: “The disputes sent to us are falling equally in favour of landlords and tenants.”

“The rising number of disputes resolved through us and the growing awareness of both the custodial and insured options for deposit protection combine to show that we are on the right track to make a success of the Tenancy Deposit Scheme when deposit protection becomes mandatory.”

The Tenancy Deposit Scheme went live in May 2004 with the backing of the professional bodies who are active in the private rented sector: ARLA, the Association of Residential Letting Agents, the NAEA, the National Association of Estate Agents, and the RICS, the Royal Institution of Chartered Surveyors. Close to 1,200 offices of residential letting and managing agents are members.