Renters lose £313 of deposits in repair charges

Renters are losing an average of £313 of their deposit when they move out of a property.

This is according to research by FindaProperty.com, which discovered some £1.1 billion has been lost collectively by UK leaseholders in the past three years. Because of this, anyone seeking lettings in London should closely read the terms and conditions of their contract before signing it.

Indeed, ten per cent of people have launched legal action in an effort to recoup some of the expenses they have incurred from landlords. Some 3.4 million tenants admitted they have had a portion of their deposit deducted at the end of their arrangement to meet various repair costs.

Typically, the cost of cleaning (37 per cent) was the most popular reason for holding on to money, while damage to carpets and curtains (21 per cent), marks on the wall (19 per cent) and poor garden maintenance (13 per cent) also result in charges.

Nigel Lewis, property analyst at FindaProperty.com, said: "Our research shows one of the main reasons funds aren't returned is a miscommunication between landlords and tenants about the condition in which the home should be left.

"The most common causes for renters not getting their full deposit back are inadequate cleaning, wear and tear, and poor garden maintenance and these are all factors that are usually spelt out in the tenancy agreement."

Mr Lewis went on to note with the cost of renting a property already high, people need to make sure they are aware of their rights.

In 19 per cent of cases where money was taken, the eventual amount was reduced or the problem was resolved at no cost, while 43 per cent of tenants said the cash taken was not proportionate to the repairs required.

Matt Hutchinson, director at SpareRoom, stated the cost of leasing a house is likely to rise in the coming months because there are still not enough first-time buyers in the market at present.

Published 5th July, 2012

© 2012 Estates IT Limited