“Where are the missing billions?” property expert asks

A leading property expert is seeking the whereabouts of at least £1.4bn held in Tenancy Deposit Schemes

£3.2bn of deposits paid by UK renters are currently sitting in the schemes – with much of that money being held by their landlord or letting agent.

Landlords and agents are legally required to place tenancy deposits in one of three government-licensed Tenancy Deposit Schemes – within which money is either held by the schemes themselves in a Custodial Scheme or Insurance Scheme where the money is retained by the landlords and agents

Anti-deposit campaigner Ajay Jagota of sales and lettings firm KIS and insurance backed deposit-free renting solution Dlighted is trying to track that money down, and has asked the Tenancy Deposit Scheme – the largest of the three schemes – to reveal which organisations hold the most money in the Insurance Schemes.

TDS has admitted that £1.4bn worth of deposits are held in its Insurance Scheme but has refused to reveal which companies hold them citing “commercial sensitivity”.

Similar requests have been made of MyDeposits and the Deposit Protection Scheme, along with a Freedom of Information request to the government.

Ajay said:

“This is a significant amount of money – it doesn’t seem unreasonable to ask where it has gone and what the people who have it are doing with it.

“It’s not that I’m suggesting any wrongdoing whatsoever, I just think the money could be better spent elsewhere.

“Instead of just gathering interest for agents and landlords it could be helping renters save for a home of their own, or being channelled into the wider economy

where it could easily end up as tax revenue which could go towards the NHS?

“I cannot for the life of me see what is commercially sensitive about this information. What is commercially sensitive about it being known that landlords and letting

agents have deposits held in Tenancy Deposit schemes like they legally have to?

“If they are large, listed companies as I suspect many of them are, this information will in all likelihood be contained in their published accounts. In which case, it’s

not that commercially sensitive!

“Organisations not being 100% transparent about where this money goes, what it is being used form and who is benefiting does nothing to improve the reputation of our industry, which ultimately can only be improved with greater transparency, particularly when it comes it tenants’ money”.

You May Also Enjoy

Love or Hate Rightmove
Breaking News

Rightmove House Price Index: Record asking prices driven by pent-up demand

The average price of property coming to the market for sale reaches a new record of £375,131, rising by 0.8% (+£2,807) in the month, as the momentum of the Spring selling season exerts some modest upwards price pressure : The market remains price-sensitive with average asking prices just 0.6% higher than a year ago The…
Read More
Breaking News

Breaking Property News – 17/05/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   New digital ecosystem Home set to transform how we move and manage our homes With moving home widely acknowledged as one of life’s most stressful events, pioneering new digital ecosystem Home is set to revolutionise the moving process, for the first time allowing movers…
Read More
Home and Living

7 Space-Saving Porch Swing with Stand Solutions for Small Yards

Porch swings signify feelings of relaxation and classic properties as they turn an outdoor space into a warm and comfortable haven. Nevertheless, for people living in small yards or with no outdoor area, getting a swing with its own stand is very difficult. The benefit is that these choices come in many different options, which…
Read More
Letting Agent Talk

Investing in Properties to Let as Airbnbs on the Isle of Wight

The Isle of Wight, a gem located off the southern coast of England, has become a prime destination for holidaymakers seeking a tranquil escape. This growing popularity has opened up lucrative opportunities for property investors, particularly those interested in letting properties as Airbnbs. Here, we delve into the benefits, considerations, and strategies for investing in…
Read More
Breaking News

Breaking Property News – 16/05/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   PriceHubble powers Mitsubishi Estate’s newly launched real-time generative AI property consultant Zurich/Tokyo, May 16, 2024 – PriceHubble, Europe’s leader in property data solutions for finance and real estate, is powering an innovative generative AI solution launched in beta version on the Japanese market by Mitsubishi…
Read More
Breaking News

Breaking Property News – 15/05/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Savills Investment Management wins City of Munich as a new tenant in the Atrium office building Press Release – Frankfurt, 15th May 2024. Savills Investment Management (Savills IM), the international real estate investment manager, has signed a lease agreement with the City of Munich…
Read More