Research from Business Development Research Consultants has revealed over 40% of landlords are still unaware of their responsibilities under the Tenancy Deposit Scheme.
Despite a strong initial uptake on the compulsory scheme, research shows that one year on awareness may have plateaued.
However, it remains strong amongst landlords with a BM Solutions product with three quarters of BM landlords saying they are aware of the details of the scheme.
Under the regulations, all landlords are required to protect their tenants’ deposit using one of three Government-authorised schemes.
However, the lack of familiarity of the scheme for many borrowers spells concern – as half of landlords admit having to withhold part of a deposit in the past. Reasons for this include covering cleaning costs and outstanding utility bills.
Tim Hague, managing director of BM Solutions, says: “The vast majority of landlords already employ outstanding practice, and the TDS is an important way of ensuring that this is cascaded throughout the sector. The industry, including tenants themselves, needs to work together to ensure that awareness doesn’t slip, and that the TDS is being put into practice.
“As a lender, we endeavour to keep brokers up to date with changes so that they can support their clients. There’s a Tenancy Deposit factsheet on our website that outlines the key information that landlords need to be aware of.”