We all know that the cost of renting is making it difficult for tenants to save a deposit to buy their own homes, but did you know that some renters are losing out even more because they don’t know their rights?
Tenants renting from a private landlord now often spend more than half of their take-home pay on rent, meaning that many young adults are finding it harder to save up a deposit for a home of their own.
And rent prices don’t seem to be coming down, with the average monthly rent now standing at £907 across the UK.
“With rent prices at record highs, the financial demands placed on tenants looking to secure a property has never been greater,” notes Leon Ifayemi, the CEO and Co-Founder of rental property app SPCE.
“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.”
SPCE recently commissioned a study among 2,000 UK adults, looking at the challenges faced by tenants when attempting to claim back their deposit – an issue that could see them lose more money, in addition to high rent prices.
The survey found that 16% of tenants claimed that their landlord or letting agent unfairly took money from their tenancy deposit. However, when it comes to challenging unfair claims, the research shows that tenants are not confident or aware of the legal processes involved.
19% of tenants reported losing money from their tenancy deposit due to damage at the property during the time they lived there, with this figure rising to 28% for millennials and doubling to 40% for students.
Around 13% of tenants admitted to losing money through a tenancy deposit due to damage incurred by one of their fellow housemates, while 14% reported losing their deposit due to problems with the property that existed before they moved in.
Ifayemi insists: “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.”
We have created a useful guide that will help landlords, tenants and letting agents understand the laws surrounding tenancy deposits, to help more landlords stick to their obligations and more tenants get their money back at the end of the tenancy.