Members of the National Approved Letting Scheme (NALS) in Dunmow are currently busy making preparations for a change in the law on 6 April 2007 which will radically alter the way that deposits for rented accommodation are managed.

As part of the 2004 Housing Act, the statutory Tenancy Deposit Scheme will come into effect in England and Wales and has two main objectives; to safeguard tenancy deposits paid in connection with assure shorthold tenancies, and to facilitate the resolution of disputes arising in connection with deposits.

“The new legislation means that after 6 April, any monies taken by an agent or landlord will have to be held in a Government approved scheme, following either an insurance based** or custodial format***, explained Stephen Goddard, from A120 Lettings.

“We will be working alongside NALS in the next few weeks to ensure that we are ready. For those needing to commit to a new tenancy before this date, we would strongly recommend that you rent or let through a reputable agent, one with membership of NALS or the professional bodies as they will have standards in place to ensure that you receive the best service possible.”

With just a few days to go until the introduction of the statutory Tenancy Deposit Scheme, a survey by the Government-supported National Approved Letting Scheme (NALS) has indicated that many landlords and tenants may not be aware of the incoming legislation and the potential impact it will have on how they let or rent properties in the future.

Of the 450 letting UK agents that responded to the survey*, only 15 per cent of agents had noted an increase in enquiries from landlords and just 5 per cent from tenants in relation to tenancy deposit schemes.

“Whilst adoption of a scheme is not negotiable and applies to everyone, said Mr Goddard, we do know that many of our clients and customers are not yet aware of the forthcoming changes. We will be talking to our tenants and landlords over the coming weeks to explain what it means for them but ultimately, it will be the agents’ responsibility to implement the new ways of working.

“If anyone should have any queries or concerns with regards to the new Tenancy Deposit Scheme, feel free to pop in and see us – you don’t have to let or rent through us and we will be happy to help if we can.”