Deposit scheme continues to protect unaffiliated agents ? buy to let mortgages

26 January 2009

Government-backed tenancy deposit protection organisation Mydeposits.co.uk has announced it will continue to offer the service to unregulated lettings agents.

It comes following a decision by the Tenancy Deposit Scheme that it will not give protection to lettings agents that are not members of a professional body, such as the National Association of Estate Agents or the Royal Institution of Chartered Surveyors.

But Mydeposits.co.uk has stated that tenants and landlords are not more likely to experience a dispute if they use an unaffiliated agent.

"From a disputes perspective, unaffiliated agents do not represent a higher than normal risk," commented Mydeposits.co.uk chief executive Eddie Hooker.

The body is, however, tightening some of its rules to help protect those with buy to let mortgages in the wake of the economic downturn.

In related news, the Residential Landlords Association has noted that landlords who are prepared to be flexible are more likely to survive the slowdown.