Reductions in the base rates for deposits registered by letting agents with the Tenancy Deposit Scheme, coupled to other discounts and a members’ loyalty bonus, will substantially reduce agents’ costs. The new rates, to apply for the year from April 2012, reflect the efficiency of the services provided by the Scheme, its financial strength and the advantages of its not-for profit status.
Base protection rates have been reduced by up to 26%. As a result, most members who have been with the Scheme since April 2011 will have base rates ranging from £9.75 for RICS, ARLA and NAEA members and £12.75 for NALS and Law Society members, including the 50p loyalty bonus.
In addition, most members will also benefit from additional substantial discounts with nearly half, 45%, of all member letting agents entitled to both maximum discounts and the loyalty bonus in the coming year with rates as low as £3.60 per tenancy.
Announcing the new rates, Chief Executive Steve Harriott said, “As a successful not-for-profit deposit protection scheme, we are able to plough all the gains from growing the business, increasing efficiency and outperforming our key performance indicators into both improving our service to members and reducing their costs.
“We have the substantial reserves needed to secure financial stability. And, as we are a not-for-profit Scheme, we can repay our members with a combination of price reductions and improved services while still preserving our financial strength,” he added.
In the coming financial year, the Tenancy Deposit Scheme aims to enlarge its membership through its accountability, quality of service, quick response to members needs and a range of highly competitive products for the different sectors of the rental market. The Scheme has recently been opened up to individual landlords directly and through their membership of the Residential Landlords Association.
“We believe that our efforts will lead to many more agents and landlords choosing to use the Tenancy Deposit Scheme in future,” said Steve Harriott.
The Tenancy Deposit Scheme has almost 5,000 lettings agents’ branches in the system, nearly a million landlords registered and protects close to £1 billion in deposits belonging to 1.3 million tenants. Since the Scheme started, it has protected almost £2.5 billion of deposits.
Media contact Malcolm Harrison 020 7581 8335