The facts about no deposit insurance

A new insurance scheme means that landlords and tenants no longer have to struggle with deposits

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Losing your tenancy deposit on false grounds is going out of fashion faster than voting Labour. A landlords’ insurance policy has just hit the market that ends the need for deposits: the No Deposit policy, from Paragon Advance, will extract fees from tenants who break their contracts. Good tenants may nothing.

When deposit protection became compulsory a year ago, three schemes approved by the Government - the Tenancy Deposit Scheme (TDS), the Deposit Protection Service (DPS) and MyDeposits.co.uk - became available; they now protect a total of £885 million in tenancy deposits.

The emergence of insurance policies is perhaps no surprise as the deposit protection market expands, particularly as some landlords report that the new