The Government has awarded contracts to three companies to run Tenancy Deposit Protection schemes from 6 April 2007. Computershare Investor Services plc will run the single custodial deposit scheme, with the Chartered Institute of Arbitrators providing the Alternative Dispute Resolution (ADR) service. The Dispute Service Limited will run an insurance-based scheme directed primarily at letting agents; it will also run the scheme's ADR service.
Tenancy Deposit Solutions Ltd will run an insurance-based scheme, sponsored by the National Landlords Association and administered by Hamilton Fraser Insurance, which will be directed primarily at landlords. The Chartered Institute of Arbitrators will be the principal provider of ADR to the scheme.
Housing Minister Baroness Andrews said tenancy deposit schemes would help put an end to unfairly withheld deposits: "Tenancy Deposit Protection is a key consumer-protection measure, which will also introduce a simpler way of resolving deposit disputes and help raise standards in the private rented sector. But importantly under the new schemes, alternative dispute resolution services with be free to use for both landlord and tenant for the first time."
Computershare's Director of Corporate Development, Nick Oldfield said: "We are delighted to have been awarded the contract to run the custodial deposit scheme. Our unrivalled experience in delivering major projects, including the delivery of the Australian State of Victoria's custodial tenancy deposit scheme for the past eight years, means we are uniquely placed to execute this project."
Chief Executive of The Dispute Service Ltd, Lawrence Greenberg said: "It is very satisfying to know we will be able to help underpin higher standards and greater professionalism throughout the private rented sector. This is a great step forward."
Chairman of the National Landlords Association, David Salusbury said: "The award of this important government contract is a major step forward for the NLA. Sponsoring this scheme fits very well with the NLA's goals of fostering a more professional private-rented sector, and of supporting landlords' interests while ensuring that tenants are treated in a fair and equitable manner. We hope all those involved in the market will welcome this development as a positive contribution to the well-being of the private-rented sector".
The private rented sector involves some £1.2b of assured short hold tenancy deposits currently held in England and Wales.
Further details of the schemes will be available from the providers in late January 2007, explaining exactly how their schemes will operate, and how landlords can register to join their schemes to protect deposits.
