The boss of Countrywide Residential Lettings says the company pulled out of the Tenancy Deposit Scheme because of its service levels, rather than its price hikes.
It has now joined mydeposits.
The firm had been the TDS’s largest customer, previously paying in excess of £500,000 whilst having relatively few disputes.
John Hards, CRL’s co-managing director, said: “The money was one consideration, but it wasn’t just about that. It was more about administration and service levels. When we made comparisons, we found we got on well with the people at mydeposits and it felt to me like a robust business model.”
Hards, previously on ARLA’s Council, said: “I have been a passionate supporter of the TDS and was instrumental in getting it up and running. My company even put money into it. But at the end of the day, this was a business decision and it was time to move on.”
He said that as the workload for TDS had built up, it had led to delays in how it dealt with matters. “In fact, our disputes were well below the average,” he added.
Hards declined to talk about the terms of the deal with mydeposits or whether it would be cheaper than TDS. Nor would he comment on rumours that another very large lettings chain has also been in talks with mydeposits.
Hards said CRL has not signed up to mydeposits for a particular period, but added: “As a company, we do not hop around between suppliers.”
Hards also revealed that he will be stepping down from the board of NFoPP next month. But he stressed: “This has absolutely nothing to do with our leaving TDS, and I remain a very strong advocate of ARLA. However, Countrywide is planning major expansion and there is a lot of work for me to do. It would not be fair on NFoPP for me to continue as I would not be able to offer sufficient commitment.”
Mydeposits was also the specific subject of Parliamentary questions last week when the shadow treasury secretary, Greg Hands, asked about the level of complaints against it. The exchange went as follows:
Mr. Hands: To ask the Secretary of State for Communities and Local Government how many complaints his Department has received on MyDeposits.co.uk in each year since its inception.
Mr. Ian Austin: The Department has no role in dealing with complaints about the tenancy deposit protection scheme providers. Complaints about the handling of tenancy deposit protection cases are dealt with by the three scheme providers through their own formal complaints procedures.
Mr. Hands: To ask the Secretary of State for Communities and Local Government if he will review the operation of the Housing Act 2004 in respect of the regulation of licensed deposit-takers for the purpose of protecting tenants’ deposits, with particular reference to MyDeposits.co.uk
Mr. Ian Austin: As with any new legislation, we are monitoring the implementation of the tenancy deposit protection provisions in the Housing Act 2004. However, we have no plans to make any amendments to the legislation at present.
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