Purplebricks fails to protect tenancy deposits

Posted: 14/12/2021

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It has recently emerged that the troubled on-line property agency Purple Bricks, failed to protect tenancy deposits as required by law. Tenancy deposits must be protected by an agent or landlord through an approved scheme, either by transferring the deposit to them, or insuring it. This is the latest in the line of failings by the company. They have had multiple false advertising complaints against them upheld, a ruling that their self-employed agents must be employees, their share price has crashed and now this. A Purplebricks spokesperson said: “Due to the introduction of a new lettings IT system, a small number of tenant deposits were not paid into an authorised deposit scheme. As soon as we identified this issue, we took action and have now registered these deposits.” However, this still leaves their client-landlords open to fines. 

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