Although it welcomed the announcement of a firm date for the launch of a compulsory scheme to safeguard tenants’ deposits in the private rented sector, it was disappointed this would not be until next April, six months later than originally planned.
Liz Phelps, housing policy officer at Citizens Advice, said: “There can be no doubt that this important reform is needed urgently. Over 1.5 million private tenants stand to benefit from the new measures on how tenancy deposits are held in future, so it is disappointing that the planned start date for the scheme has been delayed by six months.
“But the main priority now must be to use the time before the scheme comes into force effectively to ensure that all tenants and landlords are aware of the changes and their new rights and responsibilities under the scheme. Publicising the scheme widely will be key to its success. We look forward to working with the government over the next six months to ensure that tenants are aware of their new rights.”
In 1998 Citizens Advice published Unsafe deposit, a report describing how tens of thousands of private tenants were being cheated out of millions of pounds by unscrupulous landlords. The report called then for a statutory tenancy deposit scheme to be set up modelled on a successful scheme already running in Australia.
More recently, the charity successfully campaigned with housing charity Shelter to get an amendment included in the Housing Bill to introduce such a scheme. Problems over the return of tenancy deposits continue to be one of the most common private sector housing concerns brought to Citizens Advice Bureaux.
Government figures show that 70 per cent of the 2.21 million private tenants in England have paid deposits averaging £510, adding up to £800 million. These show that one in five private tenants have problems with deposits being unreasonably withheld.
At present there is no regulation over how much is charged, how the money is held, or what arrangements are made for its return. Not only do tenants end up out of pocket, but many face hardship or debt as they struggle to raise the deposit for their next home. Tenants simply have to write off the loss or face lengthy and costly court action, where a judgment in their favour is still no guarantee they will get their money back.
However, when the tenancy deposit law comes into force, deposits will be have to be protected through landlords joining a tenancy deposit scheme with a built-in mechanism for settling disputes, ensuring the swift and safe return of deposit money.
