Landlords face fines over TDP

Posted: 08 Oct 2007 11:54:18 GMT

Landlords are being encouraged to sign up to a government-approved tenancy deposit protection (TDP) scheme.

Landlords are being encouraged to sign up to a government-approved tenancy deposit protection (TDP) scheme.

Paragon Mortgages warns that buy-to-let investors could face paying a huge fine if they do not sign up.

The warning comes six months after the schemes were introduced in a bid to protect the deposits of tenants.

"Most landlords have embraced the new rules and are already happily working with them. But those landlords that haven’t joined a scheme could find that they are unable to evict tenants if they have caused damage to a property or that they could pay out three times the deposit back if they end up in a dispute," said John Heron, managing director of Paragon.

"As ASTs (assured shorthold tenancies) taken out after April 6th start to expire, we could see a number of cases going to Alternative Dispute Resolution.

"Without the protection of a scheme, landlords are leaving themselves open. It doesn't make business sense and it could also mean that the landlord is breaking the law," added Mr Heron.

It is mandatory for all AST landlords to sign up to a TDP scheme.

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