Generation Rent wants landlord fines for exaggerating deposit claims

Generation Rent has called for fines against landlords who repeatedly make exaggerated deposit claims, handing the government a petition with 17,000 signatures.

The campaign also targets who keeps the interest on tenants’ money when they hand it over.

The tenant organisation wants insurance-backed deposit protection scrapped in England and says a tender for the replacement system, which was expected by 31 August, has yet to appear.

The petition was delivered to the Secretary of State for Housing, Communities and Local Government.

Landlord deposit claims

Generation Rent’s chief executive, Holly Williamson, said: “Requiring landlords to protect money in the scheme rather than hold it themselves, will mean that they have to make any claim after the tenancy ends and return unclaimed cash to the tenant as soon as possible.

“That will make moving home a lot less stressful.”

She added: “But the government should go further and impose fines on landlords who repeatedly get exaggerated claims rejected by the deposit schemes would shut down that behaviour and get money back into renters’ pockets quicker.”

Deposit protection changes

Current deposit protection contracts expire in 2028, with the government redesigning the system ahead of their replacement.

According to Generation Rent, ministers had previously indicated that the replacement would involve a single custodial scheme holding tenants’ money.

Landlords can currently choose custodial protection, which the campaigners say allows undisputed money to be returned while deductions are considered.

However, it argues that insurance-backed schemes allow landlords to retain interest on deposits they hold and can leave tenants under pressure to accept less money to avoid delays.

Tenants challenging deductions

Generation Rent says tenants who challenge deductions recover 79% of their deposit, yet only one in five facing what it describes as unfair deductions raises a dispute.

Potential delays and uncertainty about their rights put others off, it warns.

It estimates that its proposals could leave 300,000 private renters hundreds of pounds better off each year.

The organisation also wants interest earned on £5.5bn of tenants’ deposits to be used for the benefit of tenants.