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One in four renters struggle to get deposit back, research shows
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NEARLY a quarter of all renters struggle to get back the money they are owed at the end of a tenancy, new research suggests.

Twenty-three per cent of 1,000 private tenants surveyed by Generation Rent have experienced deposit deductions they did not think were reasonable.

Of those affected, only one in five used dispute resolution services offered by deposit protection (TDP) schemes.

Some 18 per cent could not dispute their claims because their landlord had broken the law by not protecting their deposits.

The survey also found that one in four renters had to borrow money from friends and family to cover costs at the beginning of their tenancy.

Data from freedom of information requests revealed that the average deposit is worth £1,118 in England and Wales and £793 in Scotland.

Generation Rent chief executive Ben Twomey said: “Despite the schemes offering to adjudicate disputes, many tenants are discouraged by the threat of delays, mystifying rules around what counts as wear and tear and landlord dirty tricks.

“Another injustice is the value of our own money draining away because of such a limited return.” 

Only around half of tenants are entitled to the interest on their deposits, depending on how the landlord chooses to protect it, Generation Rent found.

Mr Twomey added: “The potential interest on the £5 billion held as deposits is currently being squandered, when it could be doing so much to enforce rights and help low-income tenants find homes.”

The government is reviewing the current TDP system.

A Ministry for Housing, Communities and Local Government spokesperson said: “This government will transform the private rental sector through our Renters’ Rights Bill, which will ban section 21 ‘no-fault’ evictions, cap advance payments to one month’s rent, end unfair bidding wars and give tenants stronger powers to challenge excessive rent hikes.”

The spokesperson said that it was “unacceptable” that some landlords failed to protect tenants’ deposits, adding that the ministry would “continue to monitor the system so we can improve it.”

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