Deposit protection changes announced - buy to let mortgages

08 January 2009

Those with buy to let mortgages have been warned that lettings agents who are not members of recognised professional bodies will not be covered by dispute resolution programmes.

The Tenancy Deposit Scheme has revealed that it will only offer deposit protection to agents who are members of organisations such as the Association of Residential Letting Agents or the Royal Institution of Chartered Surveyors.

It comes after insurance firms insisted that the change be made and the Tenancy Deposit Scheme is writing to all of its members to inform them of the move.

The new rule will come into force on April 6th and unregulated lettings agents are being told to make alternative arrangements from this date to implement deposit protection, which is required by law.

Agents should then inform landlords and tenants of the changes, the body added.

Recently, another government-approved scheme, mydeposits.co.uk, launched an internet-only service that costs landlords £17.50 to protect a deposit of £300 or less.