Tenancy deposit protection withdrawn from unregulated letting agents

At the insistence of their insurers, The Tenancy Deposit Scheme will only provide deposit protection and alternative dispute resolution to letting agents who are members of recognised professional bodies.

From April 6, only regulated letting agents and corporate and individual landlords will be covered by the Tenancy Deposit Scheme and cover will be withdrawn from unregulated agents. Tenants are advised to ensure their landlords have made alternative arrangements to safeguard deposits as soon as possible.

The Scheme advises landlords and tenants to be certain either that their lettings agents are members of either the Association of Residential Letting Agents (ARLA), The National Approved Lettings Scheme (NALS), the National Association of Estate Agents (NAEA), or the Royal Institution of Chartered Surveyors (RICS); or that deposits are protected under one of the other government authorised deposit protection schemes: Tenancy Deposit Solutions (trading as mydeposits.com) or The Deposit Protection Service.

The Tenancy Deposit Scheme will shortly be writing to all its members who are unregulated agents to inform them that they will have to make alternative arrangements to protect deposits when their subscriptions end in April. It will also be writing to current tenants whose tenancy is shown to have been arranged through an unregulated agent to advise them of the change in protection that can be offered and the course of action to take to ensure protection as the law requires. The agents concerned should advise their tenants and landlords of what they intend to do on their behalf.

The Tenancy Deposit Scheme regrets the action it has been forced to take, but points out that it is due to circumstances that are well beyond its control.