The current deposit system is not working as intended for tenants with almost half unaware they can challenge deductions through a protection scheme, according to Generation Rent.
The tenants advocacy group surveyed 2,000 private renters, via Opinium, and found evidence of either a lack of understanding or poor protection of deposits.
The survey found that 22% of private renters reported unfair deductions from their deposit, yet only 4% had used the formal dispute resolution process to try and reclaim this.
Of tenants who faced unfair deductions but hadn’t disputed them, 36% thought that the process would take too long, wouldn’t be fair or would require evidence they didn’t have.
In other cases, 26% of renters said they didn’t challenge deductions due to threats from their landlords of larger deductions.
However, challenging deductions can work.
Here, Generation Rent cited data from one protection scheme that indicated 77% of tenants who challenge deductions get some of their deposit back while 32% gain all of it.
Generation Rent analysis suggests that tenants who dispute deductions get around 79% of their deposit back on average.
“When you’re moving home, 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,” said Dan Wilson Craw, deputy CEO at Generation Rent.
“But because challenging deposit deductions is usually worth it, renters put off from doing so are losing hundreds of pounds of their own money.
“The government’s review of deposit protection is an opportunity to build trust in the system so tenants have the confidence to challenge unfair landlord claims.”
