A new landlord insurance scheme has been launched by Paragon Advance. The Tenancy Deposit Legal Protection (TDLP) policy allows for landlords to lease a property while not charging the tenant a deposit, for a fixed fee of £145.

In 2007 legislation was passed which made it illegal for landlord to take a deposit from tenants without safeguarding it. Three schemes were approved by the Government - The Deposit Protection Service, Tenancy Deposit Solutions Ltd and The Tenancy Deposit Scheme. Although the schemes have been in place and a legal obligation for over a year, concerns are still being raised by charities such as Citizens Advice Bureau and Shelter that they are not being widely used by landlords.

The TDLP is being put forward as an alternative to the Government approved schemes. Paragon Advance describes the advantages of the policy as offering “landlords peace of mind that they will recover the cost of any dilapidation or damage to their property, without requiring the tenant to tie up their money for the duration of the tenancy”.

Janie Gaston, general manager of Paragon Advance told PIN: “The scheme was developed on the back of feedback from landlords and agents regarding the legislative schemes around taking deposits, and the request for the market place to develop an alternative”. When asked about the advantages for both landlord and tenant Gaston added “ This policy offers a mutually agreeable option whereby the landlord has a more realistic chance of recovery and in a timely fashion. In addition to this the tenant has an opportunity for his case to be heard and be part of the mediation process which has not happened in the past.”