Letting agents consider making formal complaint over new TDS fee structure
Added 02.02.10
Another lettings specialist has criticised the new Tenancy Deposit Scheme (TDS) fee structure and the way it has been introduced to the people and organisations it will affect.
While the TDS maintains that the new charging system is necessary to comply with the terms of their contract and is now fairer than before, the news has caused a number of letting agents to consider making a formal complaint to The Dispute Service, the organisation responsible for the Tenancy Deposit Scheme.
ARLA has already voiced strong opposition to the new structure as they believe the excessive increase in prices is both unnecessary and unjustified.
And now Caroline Kavanagh, the group lettings director for Townends Estate Agents has joined the condemnation of the TDS announcement.
She said: “Despite receiving a non specific notification back in December regarding an increase in charges to be made by the TDS, I am at a complete loss as to how any company can possibly justify such an enormous uplift in charges equating to no less than a five fold increase.
“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 within the industry experienced such a substantial and time restricted hike in pricing.
“In addition to this, agents find it extremely frustrating that we are being penalised for a 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 we certainly 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 Dispute Service review these costs or explain its sums by way of justification, I think they may find many members seriously considering their future memberships of the TDS and ARLA.”
News feed courtesy of Residential Landlord