Landlords and tenants who use deposit protection schemes may be affected by new charges from The Dispute Service (TDS).
New subscriptions for 2010-11 will be charged in two instalments. In the summer there will be a second invoice, which will look at the number of disputes submitted and any changes made to registered tenancies.
However, chief executive of mydeposits.co.uk Eddie Hooker said: "This new 'two-fee instalment' model, with the second instalment linked to the number of agent protections requiring Alternative Dispute Resolution, should be approached with care."
Minimum annual subscriptions to TDS will now cost £750, compared with £585 previously charged.
Mr Hooker claimed that this "hefty" price increase shows that a new approach by TDS is not working.
It decided last year to accept only accredited letting agents, which TDS hoped would reduce costs, he explained.
According to TDS, subscription costs may increase as its insurance costs do so. The not-for-profit organisation says a drop in outgoings will affect future subscription prices.
Written by Mark Garner
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