Saturday, January 24, 2009

My Deposits open to all

Note - the Landlord Law Blog has now moved to www.landlordlawblog.co.uk.

***

I have seen quite a few news and other items on the internet reporting the statement from the ‘my deposits’ tenancy deposit scheme confirming that, unlike Tenancy Deposit Scheme (run by the Dispute Service), they will not be withdrawing cover from unaccredited agents (see my report here).

However this is hardly surprising as my deposits is a partnership between the National Landlords Association and Hamilton Fraser Insurance. Presumably Hamilton Fraser are more minded to provide cover to all, being part owners of the business, than the (unnamed) insurers of the Tenancy Deposit Scheme. Even so, the press release states that my deposits will be introducing more stringent financial checks.

The third tenancy deposit company, The Deposit Protection Service, as the ‘default’ provider, is always open to all landlords and agents (see further here).

Stumble Upon Toolbar

6 comments:

kelvin newman said...

it's sad that these company's business agenda make it all so confusing.

Steven Hilton said...

Hi Tessa/Kelvin

If there's anything we can do to make it less confusing, please let us know.

I have found this website pretty clear: http://www.direct.gov.uk/en/TenancyDeposit/index.htm

Essentially it is no change for mydeposits. We intend to carry on covering all letting agents. So if you use mydeposits directly or through your agent, then there's nothing to worry about.

The insurance company that backs the TDS is Aviva.

mydeposits is backed by AXA and has not made the same decision over unregulated agents. Hence why there is no change.

I have to correct one thing, however. It has not been up to the NLA or Hamilton Fraser Insurance (parent companies of mydeposits) whether to continue to offer cover. If AXA had decided to follow suit, we would have had little choice. I wanted to correct the assertion that either organisation had some sort of massive influence on mydeposits...in reality, all three businesses operate separately.

Thanks.

Steven Hilton @ mydeposits

Colleen said...

Very interesting. Thanks for that info.

lujos said...

I rent out a house of mine, and take both one month's rent in advance + security deposit. In the past, I have put the security deposit into the My Deposits scheme - but do I need to put the one month's rent in there, too? Currently, I put the months rent in a secure, separate account.

Tessa Shepperson said...

It may be that the one months rent in advance could be classed as a deposit, in which case it would need protection. Take a look at this post here.

Link said...

In my experience with MyDeposits they are very much on the side of the Landlord rather than the Tenant. The whole process has been depressing. From the first contact made with an extremely rude and unhelpful telephone support agent and the time taken to resolve issued. Still going at 2 and a half months from end of tenancy.

We were also unsure of what is involved, uninformed tenants are severly disadvantaged.

I recomend taking photos of EVERYTHING and never speak to landlord on the phone.

We have been had and it has been done legally with the help of MyDeposits.

Thanks.