top of page

£2bn Tied Up in Tenancy Deposit Schemes in London

Pressure group, Dlighted, is bemoaning the amount of ‘useless’ money tied up in tenancy deposit schemes in London. Research has revealed that there is almost £2bn held in bank accounts on behalf of tenants and landlords, 97% of which will be returned at the end of a tenancy agreement.

******Whoops! Looks like this is an old post that isn’t relevant any more :/ ******

******Visit the blog home page for the most up to date news. ******

Deposits are Useless says Dlighted “The irony is, it’s unlikely these deposits will even solve the problems they’re supposed to,” says Ajay Jagota from Dlighted.

“In the meantime that money isn’t just gathering dust, its gaining interest in the bank accounts of people it doesn’t legally belong to. The industry needs to take a good hard look at itself and consider moving to an insurance-based system like every other industry on Earth. It would mean a better deal for landlords, a better deal for renters and more money in our economy.”

The largest amount of cash – £250m – is held in the Westminster borough. A further £136m is held in Kensington and Chelsea, and £124m in Camden. These figures reflect the number of households in the private rental sector: in Westminster, 43% of homes are privately rented.

Tenancy Deposit Schemes Landlords now have to place deposits in an approved tenancy deposit scheme, so the money is protected. If the landlord doesn’t do this, the tenant can apply to court to have his deposit returned. The court may also order the landlord to hand over three times the amount of the deposit, as compensation.


Related Posts

See All

Tenant demand has continued to increase

Sourced Properties Weekly List to Your Email inbox The August sentiment survey by Royal Institution of Chartered Surveyors (RICS) gauging the mood of agents, showed improvement in the lettings market.

Property Down Valued

In a recent survey by Bankrate UK, a mortgage comparison service, questioned buyers about their prospective purchases in the last 6 months in the UK. 46% revealed they had their prospective property d

Will Cardiff House Prices Crash?

House prices in the UK are starting to fall after 8 years of stable growth. This is according to recent house price indices. At the moment prices are still fairly stable, but market fluctuations have

bottom of page