Millions of landlords could adopt deposit alternatives if insured schemes disappear
Summary
The article reports that proposed Government reforms could end insured tenancy deposit schemes, prompting many landlords to consider custodial schemes or deposit alternatives. Survey results cited by Zero Deposit suggest a sizeable minority of landlords would adopt alternative products, while most would move to custodial arrangements if the current model changed.
Why it matters
Changes to tenancy deposit arrangements affect how deposits are protected, administered and disputed in the private rented sector. Residential property surveyors involved in lettings, valuation or landlord advice should be aware of potential shifts in landlord behaviour and compliance expectations.
Key points
- Government proposals could abolish insured tenancy deposit schemes.
- Zero Deposit surveyed 800 private landlords on how they would respond.
- 64% said they would move deposits to a custodial tenancy deposit scheme.
- 9% would switch directly to a deposit alternative product, with a further 26% influenced by tenant preference.
- Landlords prioritised damage protection, dispute resolution and regulatory certainty when choosing a scheme.
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