Research shows tenancy deposit schemes need fine tuning

10 April 2012 Categories: News

Research shows tenancy deposit schemes need fine tuning

A telephone survey conducted by research data provider Imfuna has shown that 65% of the landlords questioned and 52% of the letting agents thought the various tenancy deposit schemes available in the UK have been designed to favour the tenant, rather than the landlord. The other 35% of landlords and 22% of letting agents said they thought tenancy deposit schemes benefited neither party, and some even said they should be scrapped.

The results of the survey, which questioned 1000 tenants, 100 landlords with 20+ rental properties, and 50 letting agents shocked some people in the industry – especially the results from tenants. It seems that less than half of the tenants surveyed (43%) were aware of the existence of tenancy deposit schemes before they signed their tenancy agreement, and a staggering 49% knew nothing about the tenancy deposit scheme being used by their current landlord…even though landlords have a legal obligation to provide tenants with deposit scheme details.

In addition it seems only 19% of landlords think the dispute resolution services associated with the schemes actually reduce the amount of time taken to resolve deposit issues.

The creator of Imfuna, Jax Kneppers said about the results; “The survey presents a picture of landlord disenchantment with the deposit schemes. The fact that not a single landlord surveyed felt they were designed in their favour shows that there is still some work to be done by all parties.”