The Tenancy Deposit Scheme faced rough weather in its first year due to the very tight inaugural deadlines. But one can call it a success as it ended up with half a billion pounds in deposits and 2,000 deposits resolved, as quoted in the scheme’s annual report.
This is a not-for-profit organization that is responsible for holding tenants deposits and resolving landlord and tenant disputes.
The Scheme did not begin at the pace that was expected. Even though more and more landlords started to use the scheme after it became mandatory in April 2007, it still has not hit the heights that were expected.
This is primarily due to the fact that the housing market turmoil over the past year has lead to people becoming less mobile. Instead of looking to move, tenants have also decided to stick with their existing rented accomodation and extend their current tenancies.
If tenants were already in a property before April 2007 then there is no need to comply with the tenancy deposit scheme. The scheme only applies to new tenancy agreements since April 2007.
John Hornsey, The Chairman of The Dispute Service believes that there is still widespread ignorance and non-compliance with Tenancy Deposit Protection. But he is hopeful that with their efforts and the co-operation of other professional bodies involved there will be a greater degree of compliance in the current year.
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