New research carried out by SPCE revealed that 16 per cent of tenants claim to have ‘unfairly’ lost their deposits.
The SPCE carried out research amongst over 2,000 UK adults, and revealed that ‘Generation Rent’ faced several problems trying to claim back their deposits. 16 per cent of UK adults claim that their landlord or lettings agent has unfairly taken money from their tenancy deposit. Furthermore, 13 per cent of Generation Rent have attempted to challenge their landlord’s claim to their deposit, yet did not know the legal precedent for doing so.
Industry statistics indicate that over a billion pounds is lost each year through tenancy deposits. The SPCE survey found that 19 per cent of UK renters have lost money from a tenancy deposit due to damage to the property during their tenancy. This figure rises significantly to 28 per cent for millennials, and again for students, with 40 per cent of the latter group losing elements of their deposit.
The research found that a significant proportion of Generation Rent were losing their deposits due to circumstances beyond their control. 13 per cent of tenants admitted losing money through a tenancy deposit due to damage caused by their housemates, whilst 14 per cent claimed to lose money due to pre-existing problems with their property.
CEO and co-founder of SPCE, Leon Ifayemi, commented on the findings: ‘With rent prices at record highs, the financial demands placed on tenants looking to secure a property has never been greater. The amount of money required upfront can be significantly high, and the risk of losing some of a deposit can cause notable financial stress to those attempting to move to another property. More should be done to increase awareness of the frameworks in place for those seeking to challenge unfair attempts to take money from a tenancy deposit – this is a legal right that cannot be ignored, with students as well as young people generally clearly requiring greater support and education as to their tenant rights.’