Private Rental Housing Deposit Scam

The UK government is considering legislation to protect private housing renters from rogue owners who attempt to withhold all or part of their deposits without good reason.

It is common practice in private rental housing for owners to demand deposits from their occupants to cover damage or unpaid charges.

The BBC reports (http://news.bbc.co.uk/1/hi/business/2523677.stm Friday, 29 November, 2002) "According to government research for England, about ONE IN FIVE tenants believe they have lost out because their DEPOSIT WAS UNREASONABLY WITHHELD by a landlord or agent."

A Citizen's Advice Bureau report (http://www.nacab.org.uk/docks/unsafe.doc) suggests the problem is far worse: "as many as half of all private tenants who paid a rental deposit may have experienced their deposit being unreasonably withheld."

The BBC report quotes the following common grievances:"

• Landlord/agent 'disappears'or is incommunicado
• Tenant gives up getting deposit back
• Landlords and agents refuse to return the deposit without giving any reason
• Dispute over whether deductions are reasonable"

"The government has set out a range of options for reform in its, but has suggested in its consultation that it favours a 'custodial' approach.

This means it would be illegal for a landlord to hold a deposit for a tenancy - and it would be a legal requirement for landlords and agents to demonstrate membership of an approved custodial scheme prior to taking the deposit.

Bank interest earned on the 'pot' of money could effectively pay for the administration of the scheme, the government said."

UK Complaint's advice to occupants who feel they have had a deposit withheld unreasonably is to to take legal action to recover their money. Remember "UK case law indicates that the tenant is not liable for fair wear and tear, the cost of which is covered by the regular rental payments made by the tenant. This would imply that for a let of any length, the state of the decoration, fixtures and fittings will inevitably show some deterioration which should not be held against the deposit" (CAB http://www.nacab.org.uk/docks/unsafe.doc).

Advice on initiating legal action may be obtained from any Citizen's Advice Bureau, you may locate your nearest branch at http://www.nacab.org.uk