This was despite concerns expressed by almost half of them before its implementation on 6 April that it would make their lives more difficult.
The number of landlords who think the tenancy deposit scheme makes things easier for them is more than twice the number who thought it would prior to launch of the scheme. This news comes just over three months after the launch of the new rules.
John Heron, managing director of Paragon Mortgages, commented: ‘The launch of tenancy deposit protection has been more successful than many landlords expected. Prior to implementation, there was concern that it would significantly add to the complexity of letting out properties privately, but these latest findings indicate that the majority have taken it in their stride.”
Indeed, these findings are echoed by David Salusbury, chairman of Tenancy Deposit Solutions Limited (TDSL), provider of the insurance-based protection scheme designed for landlords who wish to continue to hold deposits themselves: “Notwithstanding an element of reticence about mandatory tenancy deposit protection, landlords have recognised that this is the law of the land and they must comply. It is clear that landlords are getting used to the new procedures and for our part TDSL is well ahead of its forecasts in terms of the number of deposits protected.”
Paragon Mortgages’ research also suggests that landlords have assimilated another major regulatory change in the private rented sector, the introduction of licensing of housing in multiple occupancy (HMOs) in April 2006.
In the recent survey, just 17% of landlords said that HMO licensing makes things more difficult for them, compared with 43% when they were polled in early 2006, prior to the implementation of HMO licensing. Indeed, 34% of landlords said that the compulsory licensing of HMOs has made things easier for them, with a further 21% saying they had had no effect.
Heron concluded: “Both these measures were implemented by the Government with a view to raising standards in the private rented sector. While landlords understandably had some concerns prior to implementation about what they saw as additional red tape, it is encouraging to find that they have embraced both HMO licensing and the new TDS rules.”
