The government is being urged to take action to clampdown on landlords that fail to protect tenants’ deposits in an approved scheme.
Recent research from comparethemarket.com suggested that around a third of landlords have not placed their tenant’s deposit into a government-backed deposit tenancy deposit protection scheme.
This equates to in the region of £1.2bn of deposits which could be unprotected, according to anti-deposit campaigner Ajay Jagota of Dlighted.
Jagota said: “This is literally a billion-pound scandal. The government must take action.
“Our research has revealed that crooked landlords and letting agents are convicted to thieving more than £1m of deposits every year, but we’ve always said that we feared the true figure could be hundreds of times higher – and this survey backs up our belief.”
Jagota unsurprisingly wants to see more landlords and tenants to use his company’s deposit-free renting solution that helps tenants rent property for zero deposit by using deposit replacement insurance to give landlords and letting agents cover against property damage, unpaid rent and legal fees.
He added: “Deposit free renting doesn’t just make it easier to find and keep good tenants while protecting landlords better, and at the same time making it cheaper to rent – by delegating damage claims to an independent insurer it guarantees that if repair work is needed, it gets done.”