Landlords accused of making up ‘imaginary damage’ to keep deposits
Summary
The article reports on calls from Generation Rent and Labour to move towards a single custodial tenancy deposit protection model, with Housing Minister Matthew Pennycook said to be considering ending the current dual system. It also highlights disagreement over whether insured schemes are more vulnerable to fraud, with MyDeposits arguing that no published government assessment has yet demonstrated a materially greater risk.
Why it matters
Any change to tenancy deposit protection would affect how landlords and letting agents handle client money, dispute resolution and compliance processes. Surveyors involved in lettings, valuation or landlord advisory work may need to understand the implications for tenancy administration and risk management.
Key points
- Labour is reportedly exploring a single custodial deposit protection system.
- The current model allows both custodial and insured deposit schemes.
- Generation Rent argues insured schemes can enable unfair or disputed deductions.
- MyDeposits says no government evidence has been published to prove insured schemes are materially riskier.
- The issue relates to deposit handling, fraud risk and dispute resolution.
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