Generation Rent has called for a complete overhaul of the deposit system amid claims that it is failing renters and lining landlords’ pockets.
Research by the campaign group found that almost half (46%) didn’t know they could challenge deposit deductions they deemed to be unfair while only 4% had used the formal dispute resolution process to try to reclaim the money.
In a poll of 2,000 private renters, a quarter of those who did not challenge unfair deductions said their landlord either threatened to make a larger claim if they raised a dispute, refused to take part in the adjudication process or had not protected the deposit in the first place.
Deputy chief executive Dan Wilson Craw told The Guardian that the system was “failing renters who are put off from challenging unfair deductions by unclear rules, and threats and delaying tactics from landlords”.
He added: “Ultimately, that puts millions more in unscrupulous landlords’ pockets. The uncertain timescales and unclear rules of the deposit system, as well as obstructiveness and threats from some landlords, mean that accepting unfair deductions to get some cash back quickly can feel like the better option.”
Generation Rent wants to see a 14-day deadline for deposits to be returned at the end of a tenancy and for landlords to be legally compelled to take part in dispute resolution if a tenant pursues it, with disputes resolved within 10 days.
Eddie Hooker, CEO of mydeposits (pictured), believes schemes have served the private rented sector well during the past 18 years, with statistics showing that where they are involved in using tenant deposit protections (TDP) schemes with disputes, more than 65% of tenants get all or most of their deposit back.
“The no deposit market currently looks after less than 5% of the deposit market, providing proof that tenants still prefer the traditional TDP arrangements where they get their deposit back without having to pay for the privilege,” he tells LandlordZONE.
“What is clear however, is that tenants need further education about their rights and obligations and indeed, so do landlords.”
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