Landlords given TDP warning

Buy-to-let property investors are being encouraged to sign up to a tenancy deposit protection (TDP) scheme.

The comments come from Paragon Mortgages six months after the schemes became mandatory for assured shorthold tenancies (AST).

Paragon warns that landlords face a big fine if they fail to join a scheme, which were introduced as a way of protecting the deposits of tenants.

"Most landlords have embraced the new rules and are already happily working with them. But those landlords that haven't joined a scheme could find that they are unable to evict tenants if they have caused damage to a property or that they could pay out three times the deposit back if they end up in a dispute," warned John Heron from Paragon.

"As ASTs taken out after April 6th start to expire, we could see a number of cases going to Alternative Dispute Resolution.

"Without the protection of a scheme, landlords are leaving themselves open. It doesn't make business sense and it could also mean that the landlord is breaking the law," he continued.

The Association of Residential Lettings Agents recently revealed that landlords in the UK are charging record rents.

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