New deposit scheme launching
January 15, 2013
A new deposit scheme, being launched by the Deposit Protection Service, claims to have the cheapest tenancy deposit rates in the market
The new insurance-backed scheme will be in addition to the DPS’s custodial service, and will go head to head with the ARLA’s TDS and the NLA’s Mydeposits.
The DPS scheme will charge no membership or annual renewal fees, and it will charge agents £9.50 (plus VAT) per deposit, with discounts available for volume. Landlords will be charged £15 (including VAT) for deposits under £500, and £22.50 for deposits over £500.
The charges will undercut existing charges made by other schemes:
- TDS charges agents either £13.25 or £10.25, depending on their level of discount. Landlords pay £16.50 for deposits up to £500 and £24 for deposits over £500 with an additional fee of £75 for The TDS DepositGuard scheme.
- Mydeposits charges agents an annual fee of £50-£100 per branch, plus between £10 (for SAFEagent members) and £35 per deposit. Landlords currently pay Mydeposits a £60 joining fee and between £17.50 and £30 per deposit.
The new scheme launches on April 2 and is the first scheme to offer landlords and letting agents both custodial and insurance protection options.
Landlords and agents will be able to register online as well as by phone, and manage both their custodial and insured deposits via one integrated online account.
Kevin Firth, director of the DPS, said: “We’re delighted to announce the pricing for our insurance based deposit protection scheme and provide our customers with the best value for money deposit protection options. Our goal is to deliver excellent service to the industry, and offering the most cost-effective insured scheme alongside our custodial option will ensure that landlords and letting agents have the best choice of protection.”