TDSL, which is sponsored by the National Landlords Association (NLA) and administered by Hamilton Fraser Insurance, is designed for landlords who wish to continue to hold deposits themselves, rather than transfer them into a custodial scheme.
It will be mandatory for all landlords who take deposits for assured shorthold tenancies in England and Wales on or after 6 April 2007 to join a government-authorised tenancy deposit protection scheme. Landlords will be legally required to protect the tenant’s deposit and provide details of the scheme to the tenant within 10 days.
The fees will be as follows:
Key:
NLA members
Non NLA members
Scheme Joining Fee (per landlord)
£47.00
£58.75
Protection Fee (per deposit)
£26.00 (first 4 deposits p.a., £30 thereafter)
£30.00
Annual Scheme Renewal Fee
£14.70
£14.70
Fees include VAT at the applicable rate
David Salusbury, chairman of TDSL, commented: “As we prepare ourselves for implementation of tenancy deposit protection on 6 April, the announcement of fees is an important milestone. We believe landlords will find the tariff attractive. Our insurance-based scheme will enable them to continue to hold deposits as at present, which gives a landlord a form of security against any damage that may occur during a tenancy. Many landlords feel that this stability contributes to the long term success of their business. Transferring funds into a custodial scheme could be a cumbersome alternative, particularly for a landlord with a substantial property portfolio.
“Paying a modest fee to protect a deposit is far better than being ordered by the Court to pay the tenant a substantial penalty of three times the amount of the deposit. That could amount to a massive £1,761 for each deposit that is not protected, based on the average deposit of £587.”
