TDS changes have 'raised eyebrows'

20 January 2010

Written by Steve Olejnik

Buy to let landlords may see changing prices for their deposit protection schemes, it has been claimed.

The Dispute Service (TDS) announced this week (January 18th) that a new charging system will come into force, which was first reported in autumn 2009.

An increase in the minimum annual subscription for letting agents involved in the scheme was announced to be £750, rather than the previous £583 annually.

There will be two instalments made for the year 2010-11 and the second payment will include any disputes or changes in tenancy.

However, TDS also revealed that it had made discounts, and 85 per cent of members would be charged the lowest available rates.

"This announcement by TDS has raised eyebrows across the sector. I believe this new 'two-fee instalment' model, with the second instalment linked to the number of agent protections requiring Alternative Dispute Resolution (ADR), should be approached with care," said chief executive of mydeposits.co.uk Eddie Hooker.

Chairman of TDS John Hornsey said that the new system is much fairer because it looks at the way the system is used by agents.

TDS was established as a not-for-profit company in 2003.

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