A damning Citizens Advice report has found that more than half (51%) of renters using a zero-deposit scheme were misleadingly told they needed to use it to rent their home.

The charity’s survey of 4,000 private renters also found almost half (48%) faced rule-breaking letting agents in the last three years, with more than two-thirds (68%) left waiting for more than 24 hours by their letting agent for an emergency repair to be fixed.

Citizens Advice warns that “shoddy practices” need stamping out if the new Renters’ Rights Act is to deliver, while it also points out that some letting agents are engaging in illegal practices. It says some renters were forced to pay outlawed inventory check-in or check-out fees, while more than half (55%) reported waiting longer than two weeks to have all or some of their deposit returned.

Roof

Tom MacInnes, director of policy, says private renters are forking out more than ever to put a roof over their heads, and in return they get a “rock-bottom service” from letting agents.

“The new Renters’ Rights Act is a huge moment for private tenants - a reform Citizens Advice has long campaigned for. But this landmark legislation will only deliver its true potential if the government holds letting agents to account with better regulation and tougher enforcement of the existing rules.”

Zero deposit schemes let renters move into a property without paying a traditional five-week cash deposit up front, but which Citizens Advice says can cost more overall.

Welcome

Zero Deposit says it would welcome greater regulation of the deposit alternative sector. CEO Sam Reynolds (pictured right) says reports of tenants feeling pressured into purchasing deposit alternatives are concerning and highlight the need for greater transparency and regulation. “The challenges raised by Citizens Advice aren’t new and, as we’ve advocated for over many years, highlight the need for the regulation of the deposit alternative category,” explains Reynolds.

He insists its product can’t be sold as a mandatory requirement and adds: “We do not see any of the letting agents and operators we partner with committing any of the practices flagged by Citizens Advice in this study.”

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