Deposit schemes protect tenants says National Homebuyers

Tenancy deposit schemes are geared towards protecting tenants, spelling good news for anyone who has chosen to sell and rent back their home.

[UKPRwire, Tue Oct 09 2007] According to the National Landlords' Association (NLA), most landlords will have difficulty trying to prevent tenants from getting all of their deposit back.

"Where landlords have to take legal action then the courts will tend to side with the tenant," said Elizabeth Brogan, senior policy officer at the NLA.

"The landlord will have to present significant evidence in his defence before the court will see that the landlord's case is actually genuine.

"The regulations automatically protect the tenant - that was their purpose - they do provide some protection to the landlord but the assumption is that [the tenant] needs it more," she added.

Many people become tenants after entering into a sell and rent back agreement, which is popular among people whose aim is avoiding repossession and those interested in equity release.

Chris Newman of the UK's leading Sell and Rent Back provider, National Homebuyers, says "This is an extremely difficult time for landlords.

"As interest rates are high, property prices are falling and the legislation to further protect the tenant is tightened, the amateur landlord is finding it an increasingly difficult task to realise profit from their investment.

"We are currently assisting many buy-to-let mortgagees who have fallen short of being able to become the property millionnaire they dreamed of.

"Repossession is a danger that is just coming round the corner to thousands more landlords who have been unprepared for interest rate rises and falling property prices".

Mr Newman is a director of National Homebuyers, the UK's leading fast purchase property firm, guaranteeing to make an offer to purcahse any property from homeowners who are needing a quick property sale because they cannot find a buyer, need financial assistance or are finding it difficult to sell their property on the open market