Tenants 'being misled by deposit firm'

June 2009

Mytenancydeposit.co.uk does not have a government contract, one of the official schemes has warned.

Mydeposits.co.uk said that a firm operating as Mytenancydeposit.co.uk (MTD Secure Limited) was not running a government-backed scheme, despite appearances which suggested otherwise.

Along with Mydeposits.co.uk, the only other companies allowed to legally protect tenants' deposits are The Dispute Service and The Deposit Protection Service.

Tenants who put their deposits with alternative firms for safe-keeping therefore do not gain the same protection.

Mydeposits.co.uk said in a statement: "The claim that "MTD Secure Limited is a company administering a tenancy deposit protection scheme by Tenancy Deposit Solutions Limited under contract from Communities & Local Government" is not true.

"Any letting agent and/or landlord using this company should be aware that their deposits will not be protected ... Not protecting with one of the three government-authorised schemes can lead to penalties for the landlord."

The statement comes as Britain's tenants and landlords face tough financial times, due to the economic downturn and credit crunch.

Home repossessions are predicted to almost double this year by mortgage lenders - while the National Landlords Association recently said that one in three tenants were then in arrears on their rent.

New tenant scams target young

June 2009

Vulnerable youngsters are being conned through online scams.

Young British tenants are being conned by unscrupulous landlords and landladies, an investigation has revealed. Online scams offering fake rental properties are conducted through sites including Gumtree and Craigslist, the BBC reports. Con artists are demanding cash deposits from applicants and then making off with the proceeds. Often, the rooms advertised do not even exist in reality.

Sophie, 23, told the broadcaster that she had been taken in by a "landlady" who offered a room in an attractive London flat for £85 a week. She agreed to transfer £400 without seeing the property, only for the landlady to stop answering her emails.

Sophie said: "I was really upset and kind of mostly annoyed. Looking back it's so obvious. But when you need something really quick ... It's just horrible that people can do that."

When contacted by the BBC, representatives at Gumtree said that it "does its best" to prevent such scams being advertised on the site - and pointed out that the "vast majority" of users have a "safe and successful experience".

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