A charity is accusing letting agents of undermining the Renters Rights Act
Citizens Advice claims almost half of renters (48%) dealing with letting agents have faced what it calls “rule-breaking behaviour.”
The charity claims that among renters with an emergency repair, over two thirds (68%) were left waiting more than 24 hours by their letting agent.
More than a quarter (29%) saw emergency or urgent repairs left totally unresolved.
And the group goes on to claim that “letting agents were found engaging in illegal practices.”
More than half (51%) of renters using a zero deposit scheme – where renters do not pay a traditional five week cash deposit – were misleadingly told they needed to use the scheme to rent their home.
Others reported being forced to pay outlawed inventory check-in or check-out fees.
Over half (55%) reported waiting longer than two weeks to have all or some of their deposit returned.
Citizens Advice claims what it calls this “rock-bottom service” from agents is leaving private renters out of pocket.
More than a quarter (27%) of renters with an emergency repair faced extra costs or higher bills as a result.
Tenant health also took a hit, apparently, with more than a third (43%) facing emergency repairs citing a detrimental impact to their mental wellbeing after trying to address these repairs.
Citizens Advice also says it found more than one in four of all private renters (29%) cut back or went without essentials in order to pay rent in the last year – rising to 38% for single parents.
Meanwhile, almost a third (32%) had to borrow money or take out a loan to cover rent in the last year.
Undermining the Renters Rights Act
In light of these findings, Citizens Advice is calling for tougher regulation of letting agents and better enforcement of existing rules.
The charity warns that failure to do so could undermine what it describes as “the progress made by the Renters Rights Act.”
Tom MacInnes, Director of Policy at Citizens Advice, says: “Private renters are forking out more than ever to put a roof over their heads, and in return they get a rock-bottom service from letting agents.
“Nobody should be left to live in dangerous conditions for days, have to fight for money they’re owed or be charged illegal fees.
“But our advisers are helping tenants with these kinds of problems regularly.
“The new Renters Rights Act is a huge moment for private tenants … but this landmark legislation will only deliver its true potential if the government holds letting agents to account with better regulation and tougher enforcement of the existing rules.”
Deposit alternative service responds to criticism of sector
Meanwhile one of the major deposit alternative services – Zero Deposit – has issued a response to the accusations against the sector.
Chief executive Sam Reynolds has issued a statement saying: “Reports of tenants feeling pressured into purchasing deposit alternatives are concerning and highlight the need for greater transparency and regulation across the sector.
“The challenges raised by Citizens Advice aren’t new and, as we’ve advocated for over many years, highlight the need for the regulation of the deposit alternative category.
“The issue comes back to product fundamentals. There is a clear distinction between deposit alternative products that are designed with consumer protections at their core and those that are not.
“This means tenants are protected from mis-selling and pressure-selling practices, while landlords have confidence in the security and oversight behind the product.
“Importantly, our product cannot be sold as a mandatory requirement, which gets to the core of the issues flagged by Citizens Advice – it is explicitly designed to guarantee that tenants are always presented with a genuine choice between a traditional cash deposit and our alternative.
“We do not see any of the letting agents and operators we partner with committing any of the practices flagged by Citizens Advice in this study.
“We conduct thousands of customer satisfaction surveys and mystery shopping exercises every year, and work closely with our agency partners to ensure the product is introduced and explained consistently, transparently and in line with best practice.
“We welcome greater regulation of the deposit alternative sector in order to establish clearer standards, improve consistency across the market and provide stronger protections for tenants and landlords alike.
“Good providers should have nothing to fear from higher levels of scrutiny and regulation, which will raise standards across the sector as a whole.”
