NLA urges landlords to comply with new scheme

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Landlords have been warned to make sure that they comply with new legislation surrounding tenants' deposits when it comes into force on April 6th.

The National Landlords Association (NLA) said that investors who do not comply with tenancy deposit rules could be ordered by courts to pay a penalty to the tenant costing three times the amount of the original deposit.

David Salusbury, chairman of the NLA, said that under the regulations a landlord will have to inform the tenant within 14 days of the scheme being used to protect their deposit.

He said: "The majority of landlords treat their tenants fairly and return deposits promptly, less the cost of any legitimate damage or repairs.

"However, the government is taking a tough line to weed out rogue operators and the new laws will apply to all landlords, large or small, who let properties under an Assured Shorthold Tenancy after 6th April 2007 and take a deposit."

The National Association of Estate Agents has reassured investors that the new legislation is unlikely to dent the strong buy-to-let sector, with the organisation's Jan Bartlett stating that she hoped it would not deter investors.

Landlords still buying

Landlords expect to double their portfolios during the coming five years.

Most landlords do not intend to sell their properties and hoped to increase the number they owned.

The average landlord owns l.8 buy to let properties and most hoped to increase this to four in the next five years.

There is a strong market for rented accommodated especially in the way of shared houses and because of this landlords are looking for long term investments.

Others feel they buy to let market is cooling and there will be an increase in investors buying property abroad whilst the pound sterling is so strong.

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