The research showed over 45 per cent of respondents felt the TDS was a worthwhile piece of legislation, while 55 per cent described it as a ‘hammer to crack a walnut’.
The TDS has been designed to protect tenants who have had difficulty recovering their deposits and to help resolve disputes between landlords and tenants. The scheme was originally planned for implementation on 1 October 2006, but the government recently announced it is to be delayed pending further consultation.
The biggest concern among brokers remained the lack of information on the subject, with 86 per cent arguing there was not enough information to enable landlords to prepare for its introduction.
Nicola Severn, marketing manager at Mortgage Trust, said: “There is a wide divergence of opinion as to whether or not the proposed tenancy deposit scheme is a good idea. Many people in the industry think this regulation is a step too far, on top of the recently introduced licensing of houses in multiple occupation. However, a large minority of brokers welcome it. What comes over strongly, however, is that brokers lack adequate information on the TDS, and it needs to be better communicated.”
Brian Poole, mortgage adviser at A M Ruthven & Associates, said: “I think clients would view the TDS as unnecessary. But landlords just don’t know about the scheme and that’s worrying.”
Despite the concerns, 87 per cent of brokers argued TDS would have little impact on the buy-to-let market. 6 per cent of brokers expected existing investors to sell, while a similar proportion indicated it could deter new investors from entering the market.
