In association with the Residential Landlords Association (RLA), The Tenancy Deposit Scheme (TDS) has launched a new, pay-as-you-go deposit protection scheme aimed at private sector landlords.
Until now, the TDS, which says it already protects £1bn worth of deposits – more than either of the two other deposit protection schemes – has been available primarily to regulated letting agents. But now a new scheme is to be marketed by the rapidly expanding RLA as ‘DepositGuard’.
Going head-to-head with MyDeposits – the deposit protection scheme launched by RLA competitor the National Landlords Association - it is claimed that DepositGuard will ‘substantially’ undercut it. The scheme, like MyDeposits, is available on a pay-as-you-go basis and will charge no annual subscriptions or joining fees.
Steve Harriott, chief executive of the TDS, said: “TDS has been the scheme of choice for regulated letting agents for some time, but we are delighted to be able to offer deposit protection directly to landlords. They can save time and money by keeping hold of the deposit – as well as taking advantage of market-leading rates.”
RLA chairman Alan Ward said: “DepositGuard enables us to offer competitive deposit protection without compromising our position in representing landlords’ interests. The systems and documentation are also ready for changes being introduced by the Government in April and are designed to give better protection to landlords.”
DepositGuard is an insurance-backed scheme. It permits landlords to hold deposits throughout a tenancy and to use the dispute resolution service in the event of an agreement not being reached between landlord and tenant(s).