LV Reports Renters Money at Risk as Landlords Fail to Join Tenancy Deposit Scheme

The findings, from home insurer LV, acknowledge that 29% of renters who accept confused in the endure 12 months are not allotment of a control bead aegis (TDP) scheme. Despite this accepting a acknowledged claim for landlords to ensure tenants' deposits are adequate by the Government accustomed scheme.

Introduced in April 2007, the TDP arrangement was set up to ensure that tenants' deposits are not abominably withheld at the end of a tenancy. The LV= analysis begin that 48% of accepted renters are blind that such a arrangement exists, and a added 24% said they had heard of the arrangement but didn't apperceive any data of it.

All rental backdrop area a bead has been taken back April 2007 are accurately covered by the scheme, yet a allotment of clandestine renters just 27% said their freeholder is active up. This agency bags of tenants could be at accident of accepting problems convalescent their deposit, with over 77% of renters advertence they had ahead had some or all of their bead money foolishly withheld. The boilerplate bead taken by landlords in the endure 12 months is £670, so the abeyant accident is considerable.

To adverse this 13% of clandestine renters surveyed said they had banned to pay hire appear the end of their contract, because they accepted problems to appear with the acknowledgment of their deposit.

Under the TDP scheme, landlords have to assurance up with one of two schemes run by three Government accustomed banking companies. In the 'custodial scheme', the freeholder pays the bead to the arrangement for safekeeping, and in the accident of a altercation absolute acknowledgment will adjudge who receives the bead money.

In the 'insurance scheme' the freeholder retains the bead and pays a exceptional to an insurer, who will acknowledgment the money to the addressee if the freeholder does not accede with the adjudicated aftereffect of any dispute. With both schemes, landlords accept 14 canicule from the date the bead is taken to acquaint their addressee of the arrangement details.

The LV= analysis aswell appear that 40% of humans active in clandestine busy acclimation don't accept any home contents insurance in place, admitting the actuality that busy backdrop are added decumbent to accepting burgled. Also, of those that do accept home insurance, alone 10% accept a action that includes a acknowledged admonition helpline, which could be acclimated in the accident of a altercation with a landlord.

John O'Roarke, Managing Director of LV= home insurance, said:
"This analysis highlights the charge for the Government to accession the contour of this legislation and for it to be added carefully enforced, to assure both renters and landlords, as acquaintance is currently actual low. Although the majority of clandestine landlords are assuredly honest, our analysis shows that abounding tenants accept accomplished problems accepting their bead money aback in the past, and are afraid this could appear again.

"The boilerplate bead is over £500, which is a cogent aggregate of money, so renters charge to accomplish abiding they apperceive their rights. Renters should aswell consistently ensure they accept home capacity insurance in place, as not alone are they added acceptable to be burgled than home owners but some polices will cover a acknowledged admonition helpline, which could be acclimated in the accident of a acknowledged dispute."

Notes to Editors
The analysis was agitated out on account of LV= by YouGov. A nationally adumbrative sample of 1193 clandestine renters were questioned online amid 22nd to 25th July 2008. Results were abounding to be adumbrative of the UK developed population. YouGov is a affiliate of the British Polling Council.

LV= PR contact:
Emma Holyer
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Emma.holyer@lv.com