Editor's note: This brief was summarised by The Property AI Newsroom from a report by Landlord Today. Read the original article for full details.
Activists Back Custodial-Only Deposit System
Generation Rent activists are supporting Labour’s proposal to move towards a tenancy deposit protection system based solely on custodial schemes. This follows comments from Housing Minister Matthew Pennycook, who has stated he is considering ending the dual-model system that has been in place for nearly two decades.
The current dual-model system allows for both custodial and insurance-based deposit protection options. The potential shift to a custodial-only approach is being discussed as part of wider reforms to tenancy deposit protection.
This development is relevant for UK letting agents and inventory clerks, as any changes to deposit protection systems could impact how deposits are managed and disputes are resolved.
Source: Landlord Today