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| Version 0 | Version 1 |
|---|---|
| Safeguards for tenants' deposits | Safeguards for tenants' deposits |
| (about 4 hours later) | |
| New rules to protect deposits paid by private tenants in England and Wales have come into force. | New rules to protect deposits paid by private tenants in England and Wales have come into force. |
| They aim to prevent landlords unfairly holding back all or part of a deposit when tenants leave their property. | They aim to prevent landlords unfairly holding back all or part of a deposit when tenants leave their property. |
| All landlords and letting agents will have to sign up to the Tenancy Deposit Protection scheme and disputes will be handled by a free resolution service. | |
| Communities Secretary Ruth Kelly said some landlords were "profiteering from other people's money". | Communities Secretary Ruth Kelly said some landlords were "profiteering from other people's money". |
| There is an estimated £1.2bn tied up in shorthold tenancy deposits in England and Wales. | There is an estimated £1.2bn tied up in shorthold tenancy deposits in England and Wales. |
| But 17% of tenants say they have had some or all of their money withheld without good reason. | But 17% of tenants say they have had some or all of their money withheld without good reason. |
| 'Greater fairness' | 'Greater fairness' |
| Mrs Kelly said the sums of money involved were "significant", on average about £700, and therefore it was important that people paying them in "good faith" were not wrongly left out of pocket. | Mrs Kelly said the sums of money involved were "significant", on average about £700, and therefore it was important that people paying them in "good faith" were not wrongly left out of pocket. |
| "The vast majority of landlords and agents act fairly and take their responsibilities seriously," she said. | "The vast majority of landlords and agents act fairly and take their responsibilities seriously," she said. |
| "However, there are a minority pocketing deposits and profiteering from other people's money. | "However, there are a minority pocketing deposits and profiteering from other people's money. |
| "This is completely unacceptable. The new rules will inject greater fairness into the rental market and mean that when a tenant sticks to the rules, the landlord or agent must too." | "This is completely unacceptable. The new rules will inject greater fairness into the rental market and mean that when a tenant sticks to the rules, the landlord or agent must too." |
| Getting back deposits from a minority of unscrupulous landlords puts tenants in a David and Goliath situation Adam SampsonShelter | Getting back deposits from a minority of unscrupulous landlords puts tenants in a David and Goliath situation Adam SampsonShelter |
| All new deposits will have to be secured with one of three schemes, under the Housing Act 2004. | All new deposits will have to be secured with one of three schemes, under the Housing Act 2004. |
| One holds the deposits directly, returning the interest to the tenant when they leave. | One holds the deposits directly, returning the interest to the tenant when they leave. |
| The other two schemes will provide insurance cover if a landlord defaults. | The other two schemes will provide insurance cover if a landlord defaults. |
| These will cost landlords and tenants a fee, but will allow them to keep the interest earned. | These will cost landlords and tenants a fee, but will allow them to keep the interest earned. |
| In the event of a dispute, all of the schemes will hold onto the money until the matter is resolved. | In the event of a dispute, all of the schemes will hold onto the money until the matter is resolved. |
| If a landlord takes a deposit but fails to use any of the protection procedures, then he forfeits his normal rights to eviction and could be fined. | If a landlord takes a deposit but fails to use any of the protection procedures, then he forfeits his normal rights to eviction and could be fined. |
| Adam Sampson, chief executive of homelessness charity Shelter, said: "Getting back deposits from a minority of unscrupulous landlords puts tenants in a David and Goliath situation and often leaves them out of pocket. | Adam Sampson, chief executive of homelessness charity Shelter, said: "Getting back deposits from a minority of unscrupulous landlords puts tenants in a David and Goliath situation and often leaves them out of pocket. |
| "This scheme provides a vital safety net for both tenants and responsible landlords, which should ensure the rental system is fairer for everyone." | "This scheme provides a vital safety net for both tenants and responsible landlords, which should ensure the rental system is fairer for everyone." |