After joining the tenancy deposit market just six months ago, Capita is to withdraw. The whole event is shrouded in mystery with no clear reason behind their exit. The firm would almost certainly have signed a three-year contract with the Government authorising it to run a scheme.
Capita says on its website: “Capita Tenancy Deposit Protection is no longer accepting new deposits. Any deposits registered with the scheme will continue to be protected unless otherwise notified. Landlords, agents and tenants who are affected have been notified in writing.”
Steve Harriott, chief executive of the Tenancy Deposit Scheme, said: “It is clearly a surprise that only six months into a new contract, one of the entrants has chosen to withdraw at such an early stage. “What is important, though, is that any disruption caused to tenants and landlords is kept to a minimum.”
William Taylor of Martin & Co Huddersfield (Letting Agent Huddersfield, Estate Agent Huddersfield & Property Management Huddersfield) said “unfortunately we were unable to have experienced using Capita’s service, but am puzzled as to their leaving of the market. We currently use the DPS and I can only speak highly of their processes and service. I think the system works for all involved, my main worry is the huge number of agents and landlords still breaking the law when it comes to deposit registrations.”