Half a million landlords could be liable to pay compensation to their tenants for failing to place their deposits into a protection scheme.
Rules require all landlords to secure a deposit in an accredited scheme for the lifetime of the tenancy, but new research suggests huge numbers of landlords have failed to do so.
These property owners face penalties of up to four times the original deposit amount.
Analysis by Hamilton Fraser, which owns the protection company My Deposits, found that there are an estimated 3.5 million deposits in the country at present, with an average value of £1,139.
However, it warned that 508,000 of these deposits have not been properly protected by the landlord.
Author: Adam Williams
Date: 31st of January 2020