50 percent of buy-to-let landlords unaware of TDS

50 percent of buy-to-let landlords unaware of TDS
Over half of buy-to-let landlords in the UK Property market are unaware of the new Tenant Deposit Scheme (TDS), a survey has found.

According to Alliance & Leicester (A&L), 53 per cent of landlords still claim to be unaware of TDS, while nearly a quarter (25 per cent) said they were aware of it but did not really understand the terms of the legislation in relation to their Property Investment.

Just 24 per cent of landlords said they actually knew about the scheme and completely understood it, A&L found.

Launched in April TDS was designed to protect tenants' money by forcing landlords to place deposits in a designated account - as well as providing increased support for tenants in the case of disputes between landlords.

Commenting on the findings Jeremy Claridge, head of specialist mortgages at A&L said: "The Tenant Deposit Scheme is designed to give both tenants and landlords peace of mind, and in the event of any dispute, all cases will be treated fairly.

"This should make both renting and letting a less stressful experience overall, and hopefully the landlord/tenant relationship should shake off the traditional image of warring partners."

Additionally, over half of all landlords admit they keep some or all of their tenant's deposit when they move out, the research found.

Damage to property, missed rental payments and cleaning costs were the top three grievances that landlords used to justify not paying back tenants' deposits.