Deposit protection insurance

Posted: 29 May 2008 13:02:45 GMT

Landlords keen to stay in the buy-to-let property market should make sure they comply with the tenancy deposit protection legislation, an industry expert has warned.

Landlords keen to stay in the buy-to-let property market should make sure they comply with the tenancy deposit protection legislation, an industry expert has warned.

Mydeposits.co.uk provides an insurance-based tenancy deposit protection scheme which has been authorised by the government.

David Salusbury, chairman of mydeposits.co.uk, explained that, with their scheme, landlords don't have to leave their deposits with a letting agent.

"Just because a landlord now has to protect their tenants' deposits, it doesn't mean they have to hand over the cash to a third party."

Mr Salusbury warned that if landlords fail to comply with the government's tenancy protection legislation they could face fines up to three times the deposit amount.

If a deposit remains unprotected, landlords will have "limits placed on their ability to seek possession" until the down payment is protected.

New government legislation to improve the green credentials of a property means that landlords will need to get an Energy Performance Certificate for any property they let after October 1st 2008.


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