Tenants' deposits: millions unclaimed
- 8th December 2009
- Renting Property News
UK tenants urged to contact Deposit Protection Service, as £5 million of tenancy deposits remains unclaimed.
The Deposit Protection Service (DPS), which holds nearly half a million deposits nationwide, has stated that over 8,000 deposits remain unclaimed.
Kevin Firth, Director of the DPS explained: “We are committed to repaying deposits as quickly as possible, but unfortunately some tenants are not keeping their contact details up to date – resulting in this large number of unpaid deposits.”
For security reasons it is the tenant's responsibility to keep the DPS updated with the correct contact details. According to the DPS, many tenants are unaware of this, believing that their estate agent or landlord will do this for them.
From the 26th of November this year improvements are to be introduced, landlords will be required to provide either a UK mobile number or valid email address for their lead tenant.
Tenants who do not have either of these methods of communication are being urged to apply for a paper deposit submission form.
From early next year the DPS also plan an SMS messaging service, alerting tenants when landlords have started repayment proceedings on their deposits.
Firth continues: “This is part of our continuous efforts to speed up the repayment process and reduce the number of outstanding deposits”.
Stephen Ludlow of ludlowthompson, London's Letting Agent comments: "Regretably the scheme has proved lacking in many ways. Despite there being three schemes, there are problems with landlords not registering even though this is compulsory. Landlords who fail to register a tenant's deposit are liable to pay up to three times the original amount back."
Tenants are not keeping their contact details up to date.
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