KFH welcomes mandatory regulation of Tenancy Deposit Protection

On 6 April 2007 the Tenancy Deposit Protection legislation comes into effect stating that all deposits taken by landlords and letting agents must be protected by a government approved tenancy protection scheme. It is designed to protect tenancy deposits and resolve disputes over the apportionment and settlement of their return. Leading London estate agent Kinleigh Folkard & Hayward welcomes this official legislation.

Judienne Wood, Lettings Director of Kinleigh Folkard & Hayward, explains: “I fully support and welcome this mandatory legislation. From April landlords and tenants alike will have a greater degree of protection and piece of mind over deposits held for rental properties, which is normally six weeks rent¹.

“In the very few cases where landlords employ ‘bully boy’ tactics and tenants push their luck, disputes over deposits will be resolved independently. Ultimately, this government regulation will uphold standard industry practices in the residential lettings market and breed good behaviour by landlords and tenants.

“Although this compulsory legislation is new, the principal is not. The government first piloted a deposit protection scheme in the late 1990s and as an ARLA regulated agent, we have always held deposits as a stakeholder providing protection for both tenants and landlords. As a stakeholder before we release a deposit, we have to receive written permission from both parties to do so, unlike agents who act as a landlord’s agent.

“Across our 24 lettings branches in London, the number of disputes over deposits which we receive is minimal: in the last year just 0.3 per cent of our tenancies involved this type of dispute. However the creation of this official, independent body is a positive step forwards to stamp out unscrupulous behaviour and provide reassurance to consumers.”