The latest figures from The DPS, the only custodial deposit protection scheme accredited by the Government, show that this equates to just over £370 million worth of deposits currently being protected by the scheme.
Kevin Firth, director of The DPS, said: “As we near the end of the third year of tenancy deposit legislation, these figures just go to show that more and more landlords and agents are complying with the law – The DPS is still registering over 200 new landlords everyday.
“With the UK economy facing tough times ahead and some mortgage lenders still reticent to lend, indicators suggest that a rise in the private rented sector could be likely as potential homebuyers are still forced to consider renting. If they do, it is important for them to remember that their deposit has to be protected with one of the three government approved schemes.”
The DPS holds onto a tenant’s deposit for the term of the agreement and is funded entirely by the interest earned from deposits held in the scheme. Under the legislation, landlords who fail to register a deposit face being fined up to three times the value of the deposit and losing their eviction rights.