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11 July 2006
The government's proposed Tenancy Deposit Scheme (TDS) will not have an impact on the popularity of buy-to-let mortgages, experts believe.
A survey of mortgage intermediaries from buy-to-let lender Mortgage Trust revealed that a massive 87 per cent of respondents thought the proposed new legislation would have little impact on the buy-to-let market.
The proposed measure would provide protection for tenants' deposit money and is designed to resolve disputes between tenants and landlords more quickly.
It was originally proposed for implementation in October this year, but has been delayed by the government, with a new launch date expected to be announced soon.
However, while the majority of mortgage intermediaries did not feel that the TDS would damage the buy-to-let mortgage market, they were divided on whether is was actually a useful piece of legislation, with 45 per cent regarding it as worthwhile and 55 per cent feeling it was "a hammer to crack a nut".
"The vast majority of intermediaries are not worried that TDS will impact adversely on the private rented sector, with only a small minority believing it could spur landlords to reduce their involvement or deter new investors from buying," said marketing manager at Mortgage Trust, Nicola Severn.
If you are concerned about the impact that a tenancy deposit scheme could have on your financial commitments, order your credit report now to find out where you stand.
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