Welcome to the Experience Invest blog. The Center for Economics and Business Research (CEBR) estimates that 14.5% of all deposits held are not protected by landlords or agents, while around 1.1 million tenancy deposits are unprotected. Landlords who fail to protect an assured shorthold tenancy deposit lose their right to evict and face court claims for compensation.
Given that the average new deposit is currently at £1,139, the penalty could be £4,556 per unprotected deposit. Around £1.2bn worth of deposits are not protected in tenancy deposit schemes.
Matthew Hooker, co-founder of Ome, said: “The reality is that the private rental sector is changing, and has been changing gradually through the formal introduction of deposit protection in 2006 and the subsequent launch of the more traditional protection schemes.
“It’s impossible to tell just how many deposits are still sat unprotected in the bank accounts of either rogue landlords or agents but based on market data we can make a conservative estimate that this total value runs into the hundreds of millions of pounds.
“We’d always advise tenants to check which deposit protection scheme your agent or landlord is part of and to make sure they give you the documentation confirming the deposit is protected. For landlords and agents that would rather not have to worry about the often arduous and risky process of managing a deposit, we’d recommend looking at products such as our own deposit replacement membership rather than hoping they don’t get caught. It removes the need to take cash deposits but keeps you protected should the worst happen.”
Financial firms appear pleased that the Bank of England opted to leave interest rates unchanged at 0.75%. Yesterday the Monetary Policy Committee voted 7-2 to keep rates on hold, which has been taken as an endorsement of the state of the economy.
Giles Coghlan, chief currency analyst at HYCM, said: “In many ways, the decision to leave interest rates at 0.75% is welcoming news. It also means that interest rates could rise in the coming months should the so-called ‘Boris bounce’ continue and confidence in the UK economy return."
“More generally, today’s announcement shows the Bank of England is erring on the side of caution – while the UK economy is in a stable position, there are still many unknowns on the horizon which could drastically impact investors, businesses and consumers. Brexit, of course, is chief among them.”
Jerald Solis, director at London property investment service Experience Invest, said: “The Bank of England is cautiously optimistic about the future growth prospects of the economy, even with Brexit on the horizon.
“With interest rates hovering below 1% for over a decade now, the question on everybody’s minds is how long it will be before the Bank of England is prepared to increase the rate of interest to a whole percentage.”
Paresh Raja, chief executive at bridging lender Market Financial Solutions, said: “Investor confidence is returning, and we are likely to see the markets post a modest performance in the aftermath of this announcement.”
Despite the positive reaction, outgoing Bank of England Governor Mark Carney called for caution.
He said: “Although the global economy looks to be recovering, caution is warranted. Evidence of a pick-up in growth is not yet widespread.
“And any one of the known risks, such as a renewal of trade tensions, could reverse recent progress. The emerging threat from a new strain of coronavirus is a reminder of the need to be vigilant.”
Experience Invest has over 15 years expertise in providing UK property investment. With tailored solutions, every opportunity is designed to maximise returns and provide investors with a high-performing UK property. We believe in safe and secure property ownership and our properties are sold on a long leasehold agreement to provide investors with a tangible asset upon completion.
With Experience Invest, each development is delivered to a high standard and is managed my an experienced and professional management company. Find out more on the Experience Invest website. You can also connect with Experience Invest on Crunchbase here. Watch this video below to learn more:
Given that the average new deposit is currently at £1,139, the penalty could be £4,556 per unprotected deposit. Around £1.2bn worth of deposits are not protected in tenancy deposit schemes.
Matthew Hooker, co-founder of Ome, said: “The reality is that the private rental sector is changing, and has been changing gradually through the formal introduction of deposit protection in 2006 and the subsequent launch of the more traditional protection schemes.
“It’s impossible to tell just how many deposits are still sat unprotected in the bank accounts of either rogue landlords or agents but based on market data we can make a conservative estimate that this total value runs into the hundreds of millions of pounds.
“We’d always advise tenants to check which deposit protection scheme your agent or landlord is part of and to make sure they give you the documentation confirming the deposit is protected. For landlords and agents that would rather not have to worry about the often arduous and risky process of managing a deposit, we’d recommend looking at products such as our own deposit replacement membership rather than hoping they don’t get caught. It removes the need to take cash deposits but keeps you protected should the worst happen.”
Financial firms appear pleased that the Bank of England opted to leave interest rates unchanged at 0.75%. Yesterday the Monetary Policy Committee voted 7-2 to keep rates on hold, which has been taken as an endorsement of the state of the economy.
Giles Coghlan, chief currency analyst at HYCM, said: “In many ways, the decision to leave interest rates at 0.75% is welcoming news. It also means that interest rates could rise in the coming months should the so-called ‘Boris bounce’ continue and confidence in the UK economy return."
“More generally, today’s announcement shows the Bank of England is erring on the side of caution – while the UK economy is in a stable position, there are still many unknowns on the horizon which could drastically impact investors, businesses and consumers. Brexit, of course, is chief among them.”
Jerald Solis, director at London property investment service Experience Invest, said: “The Bank of England is cautiously optimistic about the future growth prospects of the economy, even with Brexit on the horizon.
“With interest rates hovering below 1% for over a decade now, the question on everybody’s minds is how long it will be before the Bank of England is prepared to increase the rate of interest to a whole percentage.”
Paresh Raja, chief executive at bridging lender Market Financial Solutions, said: “Investor confidence is returning, and we are likely to see the markets post a modest performance in the aftermath of this announcement.”
Despite the positive reaction, outgoing Bank of England Governor Mark Carney called for caution.
He said: “Although the global economy looks to be recovering, caution is warranted. Evidence of a pick-up in growth is not yet widespread.
“And any one of the known risks, such as a renewal of trade tensions, could reverse recent progress. The emerging threat from a new strain of coronavirus is a reminder of the need to be vigilant.”
Experience Invest has over 15 years expertise in providing UK property investment. With tailored solutions, every opportunity is designed to maximise returns and provide investors with a high-performing UK property. We believe in safe and secure property ownership and our properties are sold on a long leasehold agreement to provide investors with a tangible asset upon completion.
With Experience Invest, each development is delivered to a high standard and is managed my an experienced and professional management company. Find out more on the Experience Invest website. You can also connect with Experience Invest on Crunchbase here. Watch this video below to learn more: