After my earlier post on Tenancy Deposit Schemes I received a number of questions and hence this follow-up.
The private rented sector in Northern Ireland accounts for over 17% of our total housing stock and most landlords now demand a deposit at the start of a tenancy.
The return of deposits has been a long running and constant concern. Average deposits are around £300 to £500 and research carried out in 2009 by the Northern Ireland Housing Executive showed that 17% of tenants did not get any of their deposit back and 14% of tenants got part of their deposit back. Many tenants felt that the landlord was not justified in retaining any of the deposit.
TheTenancy Deposit Schemes will be self funding, at no cost to the department or the public purse. All costs such as administration will be covered by the interest which the schemes will earn through the investment of the deposits/premiums into a designated account.
Before these schemes are implemented the department will undertake widespread publicity to make sure both tenants and landlords are made fully aware.