Activists hit out at “greedy” letting agents
Summary
The article reports on renewed criticism of insured tenancy deposit protection schemes, with Generation Rent and Housing Minister Matthew Pennycook questioning whether the dual-model system should continue. It highlights a debate over fraud risk, landlord leverage and whether a single custodial model should replace the current choice between custodial and insured protection.
Why it matters
Residential property surveyors involved in lettings, tenancy management or dispute resolution may see changes to deposit protection processes and associated compliance requirements. Any shift to a single-provider or custodial-only model could affect how deposits are handled, evidenced and challenged at tenancy end.
Key points
- Generation Rent is campaigning against insured deposit protection schemes and calling for their abolition.
- The Housing Minister is said to be considering ending the long-standing dual-model deposit protection system.
- Critics argue insured schemes are more vulnerable to fraud and landlord abuse; supporters say no evidence has been published to prove a materially greater risk.
- MyDeposits says insured schemes have protected billions of pounds since 2007 and provide dispute resolution and consumer safeguards.
- A government re-procurement process for deposit protection is reportedly under way, with a proposal for a single custodial provider.
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