Agents accused of ‘high levels of non-compliance’ on deposits

Activists from Generation Rent have accused letting agents of widespread non-compliance regarding deposit returns, citing an online survey of their supporters. They highlight that one in four renters struggle to recover deposits at the end of tenancies, even though £5.4 billion is held in deposit protection schemes across Britain. While 56% of renters receive their full deposit back, 23% face deductions they deem unreasonable, and few use dispute resolution services.

Generation Rent suggests adopting systems from other countries like New Zealand, Australia, and British Columbia to improve outcomes. These include deposit passporting, using investment proceeds for tenant support, and imposing strict deadlines on deposit returns. Freedom of Information requests revealed rising average deposit values in England, Wales, and Scotland, with some tenants entitled to interest depending on protection methods. However, the group acknowledges that dispute mechanisms tend to favor renters when utilized. The research was funded by abrdn.