Increase in renters struggling to reclaim deposits

The retention of deposits by landlords can have a far-reaching negative impact on tenants, say Threshold

Housing charity Threshold has reported an increase in renters facing difficulties in reclaiming their deposits from landlords. In the second quarter of the year, the charity provided support to over 8,600 households dealing with tenancy issues. Among these cases, 880 households were successfully prevented from falling into homelessness, including 1,204 adults and 845 children. Additionally, 2,159 new clients sought help from Threshold due to being at risk of homelessness, with a majority at risk as a result of landlords intending to sell their properties. 200 renters sought support regarding deposit retention issues, compared to 172 households in the same period the previous year.

Threshold's CEO, John-Mark McCafferty, emphasised that the termination of tenancies remains a pressing concern in the ongoing housing crisis. "I think what we're seeing, and continuing to see, is a high volume of people who are renting privately who seek our support across a variety of issues," he said. "Clearly concerns around the termination of tenancies remains the main issue facing tenants."

"We saw a slight reduction in the number of households that were prevented from entering homelessness this quarter compared to the first quarter of this year. This is a result of client cases lasting for a longer time period due to their complexity, meaning that we are not closing as many cases as was previously seen.”

According to Mr McCafferty, there is a need for action regarding people's deposits, as their retention can have a far-reaching negative impact, he said. "We have seen tenants, whose landlords have retained their deposit, go on to face challenges in moving to a new home, with some forced to return to the family home to save for a new deposit or use alternative finances to fund a new deposit," he said. "We recognise that the Government legislated for this scheme in 2015, however, the scheme was never established. There are renters all over the country who cannot afford to lose their deposits, nor is it right that this money be taken from them. While renters can challenge the deposit being unfairly retained and take the matter to the RTB, this can be a lengthy and difficult process. A Deposit Pro tection Scheme is very much needed to ensure a quick and fair return of deposits to a tenant once they finish their tenancy," he added.

A Deposit Protection Scheme involves a deposit being lodged with an independent third-party resulting in a fairer outcome in relation to deposits at the end of tenancies. Threshold is launching a public campaign on a Deposit Protection Scheme and is asking renters to share their experience of when a landlord unfairly retained their deposit.