The National Landlords Association has sold its stake in Tenancy Deposit Solutions, which trades as mydeposits, to insurance business Hamilton Fraser.
Hamilton Fraser now has full ownership of the scheme, which had been a joint venture with the NLA.
In a statement, the NLS said it had agreed “to sell its stake when it became clear that the best way to improve the operational efficiency of mydeposits would be for Hamilton Fraser to integrate it more closely into its wider group operations.
“This would have been difficult and complex under the existing corporate governance arrangements.”
NLA chairman Adrian Jeakings said: “Mydeposits is working in a highly competitive market, and needs to develop and invest to meet that challenge.
“The NLA board thought it was important that we removed anything which might impede mydeposits’ future success.
“The 20-year-long partnership between Hamilton Fraser and the NLA remains strong.
“As part of the sale agreement, mydeposits will continue to be the NLA’s preferred tenancy deposit scheme, and NLA members will continue to enjoy a 30% discount on mydeposits’ protection prices.”
Hamilton Fraser and mydeposits CEO Eddie Hooker said: “Hamilton Fraser and the NLA have always sought to do what was best for mydeposits and its customers.
“Bringing mydeposits more closely within Hamilton Fraser, therefore being able to utilise common operational functions, will enable us to enhance our service and build the business further.
“While the NLA will no longer be directly involved as a shareholder, it will continue to support mydeposits and promote it to its members.
“In addition, as the private rented sector enters a phase of significant evolution, we hope this move will also highlight to tenants and landlords our commitment to moving towards being a completely independent enterprise which supports both landlords and tenants equally.”
* Separately, the average tenant’s deposit in England and Wales last year was £1,100, the Dispute Service (TDS) has revealed. In Scotland it was £675, and in Northern Ireland £587.
The figures are in a statistical briefing, just published, although covering the year to the end of last March.