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Government supports Tenancy Deposit Scheme
publication date: Nov 4, 2011
Although Housing Minister Grant Shapps has ruled out compulsory Clients’ Money Protection for letting agents in the foreseeable future, the Tenancy Deposit Scheme, TDS, has welcomed government support for its members.
98 per cent of the Scheme’s members are letting agents who have separate clients’ money accounts, safeguarded through their membership of the industry organisations, ARLA, the NAEA,RICS, NALS and the Law Society. The self-regulation imposed on their members has been praised by the Government in a letter to the Chief Executive of ARLA and the NAEA which points out that Government “Always suggests that anyone considering using a letting agent checks to see that they belong to a trade body or accreditation scheme.”
Steve Harriott, Chief Executive of the TDS (right) said, “Tenants and landlords must check the agent has client money protection insurance. This provides the assurance that they will be giving their deposits and rents to a properly regulated agent. At TDS, we now refuse letting agents asmembers of our scheme unless we are sure that they belong to the industry organisations that insist on clients’ money protection. “We have taken the view that unregulated agents are too risky for us to work with because of our bad experiences where a small but significant number have gone bust taking all their clients’ money with them,” he added.