The new fees being charged by the Tenancy Deposit Scheme are continuing to be slated by leading agents.
TDS said it had no alternative and insisted its new pricing system is fairer.
But Caroline Kavanagh, group lettings director for the Townends Group, warned yesterday of serious potential consequences for both TDS and ARLA.
She said: “I am at a complete loss as to how any company can possibly justify such an enormous uplift in charges.
“We fully appreciate that any company providing a service has to very closely monitor costs, and where standards have perhaps not met the levels expected, to very quickly make changes.
“However, we have never, in the many years we have been trading, experienced such a substantial and time-restricted hike in pricing.
“In addition, agents are being penalised for legislation that is in the tenant’s best interest and part of a contract made between the landlord and tenant.
“Agents could not possibly enforce such increases on their clients because they simply would not tolerate it, so we as the agent have no choice but to carry the cost.
“Agents invest many thousands of pounds to be members of ARLA and the TDS and take our membership status very seriously and do not treat it as a way to ‘use and abuse’ a service, in particular the one provided by the TDS.
“Unless the TDS reviews these costs or explains its sums, I think they may find many members seriously considering their future memberships of the TDS and ARLA.”
Terry Lovett, of Lovett Residential Sales & Lettings in St Neots, Cambridgeshire, said his costs had risen from £670 to £5,604, despite having had no disputes.
He said: “The TDS must have been seriously mismanaged to justify such an unacceptable increase. The TDS management smacks of being out of control.”
TDS, meanwhile, has sent a note to all agents who have complained.
It accepts: “We are very aware that the new charging system has caused apprehension among a proportion of the membership.”
However, it defends its price rises, saying: “Although we have had no alternative but to change the system, it is now fairer than before and still very competitive. Nevertheless, we recognise that the transition may not always be smooth and we are working to find ways of alleviating problems that have arisen.
“TDS takes these matters very seriously and is working on behalf of its membership. However, we still have to comply with the terms of our contract to provide the service according to current legislation.”
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Comments
Great idea Andrew - but who do you think conceived, designed and promoted TDS Ltd??? - none other than ARLA who persuaded NAEA and then RICS to join the 'gang' and the rest is history.
We had made a compliant about the TDS last year and took it to the Goverment body who are meant to police it, they were not intersted and sent us back to the TDS. So i dont think we have any chance of getting these fees reduced. We should all take our business to My deposits. Then when the TDS have no income or jobs then they may think again. Should not ARLA or NALS apply for a license to impliment a scheme for its members???
Nope - no letter or reply to a complaint made in October 2009 - different matter when demanding information from us - wanted it in three working days at the height of the postal strike!
Nope, no letter or email as yet. 530% rise in fees with less than 2% disputes. I feel very cheated when I consider that I have been a good trooper and joined NAEA, ARLA, The Property Ombudsman, TDS, NALS, now the OFT Money Laundering Tax the Agents a bit more scheme, jumped through hoops and crawled across broken glass with my flies down to prove my worth and integrity. We are being shafted good style and not even getting the benefit of a decent explanation. They should be ashamed.
No note received from TDS and still awaiting a response to our query as to why they have invoiced us for 50% more tenancies than we have registered. Currently we're faced with an increase of 1300% (£5300 to £72000) and this is with less than 2% claim rate. Can't see anything fair about this new charging structure, the system is flawed!
Neil, click on the 30 latest news stories on the left hand menu and find one called 'agents fury over huge rises in TDS rates'. Scroll down to the bottom to read all the comments and you will also see many of us have posted our price increases/case load on here too. When you've read them you may want to sign the petition on the 10 Downing St website demanding the TDS publish their formula for subscription calculations.
Our prices have increased by over 400% and we have a claims ratio of less than 2%!
Strangely enough I am still waiting for mine too. I am also waiting for a response to a complaint in October! I wouldn't mind the price increases if i felt the disputes were handled well but they are not.
I have been reading articles about the price rise for the TDS and some of them talk of a 23% rise. Our charges have risen about 165% has anyone else had such a large rise?
TDS have sent a note to all agents who have complained? In usual TDS style, Im still waiting for mine! Has anyone received their letter yet and, if so, was it helpful?