Deposit replacement schemes may be unlawful

Posted: 17/3/2022

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Deposit replacement schemes may be ruled unlawful. During a recent court hearing in Wales, a judge stated that they appeared to be a "prohibited" tenant charge. The legislation in England and Wales, whilst different, is similar in some aspects to N Ireland, so it could affect us. The scheme is where the tenant pays an insurance premium instead of a deposit. The insurer then pays out the value of the deposit where succesfully claimed. So far though, due to very strong rental demand in Belfast, we have not had to rely on these schemes.

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