Summary: The head of the National Residential Landlords Association (NRLA) has criticised claims that landlords are “greedy” over tenancy deposits, responding to calls for reform of the deposit protection system. The government is considering removing insurance-backed deposit schemes in favour of custodial schemes to improve fairness for tenants.
NRLA leader challenges “greedy landlord” accusations
Ben Beadle, chief executive of the NRLA, has rejected allegations that landlords unfairly withhold tenants’ deposits, describing such claims as “unhelpful nonsense”. His comments came in response to an article by Generation Rent in the Big Issue, which argued that some landlords make unreasonable deductions to prompt tenants to settle disputes quickly.
Government proposes ending insured deposit schemes
The government has announced plans to reform the tenancy deposit protection system, including the possible removal of insurance-backed deposit schemes. Currently, landlords must place tenants’ deposits in a government-approved scheme such as the Deposit Protection Service (DPS), MyDeposits, or the Tenancy Deposit Scheme (TDS).
Custodial schemes hold the deposit independently for the tenancy’s duration, while insured schemes allow landlords or agents to hold the deposit themselves, backed by insurance. The proposed changes would require all deposits to be held in custodial schemes, preventing landlords and agents from holding deposits in their own accounts.
Generation Rent highlights risks in current system
Generation Rent supports the government’s proposed reforms, arguing that the current system can be exploited by landlords and letting agents. Dan Wilson Craw, deputy chief executive of Generation Rent, explained that insurance-backed schemes can enable landlords to delay returning deposits or make unreasonable deductions, pressuring tenants to accept less money to avoid lengthy disputes.
He added that some insurance schemes impose time limits on tenants to request their deposit back and do not require landlords to pay undisputed amounts promptly, which can result in tenants losing their deposits if deadlines pass.
Generation Rent has recommended abolishing insurance-backed schemes and introducing measures to speed up deposit returns and encourage tenants to challenge unfair claims. The government is currently conducting a reprocurement process for deposit protection, aiming for a single provider using only the custodial system.
NRLA calls for balanced reforms and tenant-led deposits
Ben Beadle acknowledged that the deposit system, introduced 19 years ago, has generally worked well but agreed that reforms could improve it. He noted that insured schemes often allow tenants to receive their deposits faster than custodial schemes, with undisputed deposits required to be returned within 10 days of agreement.
Beadle argued that most landlords are not motivated by greed and that many do not take deposits at all. He suggested a tenant-led approach where tenants select the deposit scheme and lodge the money themselves, with landlords required to make claims within 10 days of tenancy end or for the deposit to be returned to the tenant.
Practical support for landlords amid deposit protection changes
As the government moves towards reforming tenancy deposit protection, landlords and letting agents will need to adapt to new requirements, particularly the shift to custodial deposit schemes. Staying informed about these changes and maintaining clear records of deposits and tenancy agreements will be essential.
TLA membership offers access to practical compliance resources and guidance tailored to evolving landlord obligations. Additionally, TLA is currently BETA testing ORBIT™, a new property management and compliance platform designed to help landlords organise property details, tenancy documents, and compliance records in one place.
ORBIT™ aims to support landlords in managing deposit records and responding efficiently to regulatory updates. Members can explore how TLA’s resources and ORBIT™ BETA access may assist in preparing for the proposed deposit protection reforms and maintaining good practice throughout tenancy management.
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