With tenants privately renting from a landlord now typically paying more than half of their income in rent, a growing number of young adults are finding it harder to save up for a deposit for a home of their own.
Private rents currently average £907 a month across Britain, although the figures are skewed by high costs in London, according to the latest HomeLet Rental Index.
“With rent prices at record highs, the financial demands placed on tenants looking to secure a property has never been greater,” said Leon Ifayemi, CEO and co-founder of SPCE.
“The amount of money required upfront can be significantly high, and the risk of losing some of a deposit can cause notable financial stress to those attempting to move to another property,” he added.
SPCE recently commissioned an independent survey among 2,000 UK adults uncovering the challenges faced by UK renters when attempting to claim back their deposit.
Some 16% of renters surveyed claimed that their landlord or letting agent has unfairly taken money from their tenancy deposit. Yet when it comes to challenging unfair claims, the research reveals the tenants are not confident or aware of the legal processes involved.
The study revealed that 19% of UK renters have lost money from a tenancy deposit due to damages being incurred to the property during their time living in it, with this figure rising to 28% for millennials, and doubling to 40% for UK students.
Around 13% tenants admitted losing money through a tenancy deposit due to damage that was done to the property by one of their fellow housemates, while 14% reported losing their deposit due to problems with the property that existed before they had moved into the house or flat.
Ifayemi added: “More should be done to increase awareness of the frameworks in place for those seeking to challenge unfair attempts to take money from a tenancy deposit – this is a legal right that cannot be ignored, with students as well as young people generally clearly requiring greater support and education as to their tenant rights.”