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Mydeposits Chief Criticises Which? Report

Posted by Richard Ward in ,

Image courtesy of Flickr, Creative Commons

The chief executive of mydeposits has criticised a Which? report calling for reform of the deposit protection system.

Eddie Hooker suggested that since the formation of mydeposits 12 years ago, Tenancy Deposit Protection schemes have continuously delivered a good service for most tenants.

Mr Hooker said: "I recognise that the systems and processes of deposit protection may need updating to deal with today's rental market, having carried out extensive research I do not believe that overhauling the current system in favour of, for example, no deposit insurance alternatives, offers any greater protection for tenants."

However, the issue of affordability remains a problem, particularly for those renting in London who need to find an average of £2,500.

Eddie dismissed the idea of purchasing an insurance policy which reimburses landlords if the tenant doesn't pay for losses, suggesting such a scheme could place tenants in worse situation.

He added: "The fees and/or premiums charged over a 10 year renting period, could end up costing the tenant £6,000 to £7,000 for nothing. What many don't understand is that deposits are refundable if the tenant abides by the terms of the tenancy agreement. Insurance premiums are not."