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Half of Tenants Unsure About Deposit Schemes

May 23, 2014 | Landlord News  

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Research from one of the biggest flat and house share websites in the UK found that more than half of tenants (53%) have never checked to make sure their landlords are holding their deposits in one of the three government-approved, mandatory schemes.

Almost half (47%) of tenants polled did not believe that their current landlord had put their deposit in a scheme, while over a quarter (26%) said they didn’t know.

Tenancy deposit schemes are mandatory for all assured shorthold tenancies, which is the most common form of rental agreement in the UK for flatsharers if the landlord doesn’t reside in the property. Yet just over a third (34%) of polled tenants reported not knowing it is a legal obligation for live-out landlords to protect their deposits, while 16% said they had never even heard of the tenancy deposit scheme.

However, 13% reported having submitted dispute claims through a tenancy deposit scheme, with the outcomes being nearly evenly split – 48% of tenants of won their claim, while 52% favoured the landlord.

It is, of course, in the best interest of the tenant to be aware of where their deposits go, but also for landlords to properly protect the deposits, as failing to do so can result in having to pay the tenant up to three times the deposit.

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