The number of tenancies ending in a claim for more than five weeks’ rent has increased to 17%, fresh research has revealed.
Compiled by Reposit, the deposit alternative product, the company examined its own data from tenancy agreements from across the UK that have come to an end during 2024.
It found that in 17% of tenancies, landlords needed to reclaim more than five weeks of rent to cover costs such as rent arrears or damage. This figure has risen by 4% from a previous average of 13% in 2023.
During 2024 so far, Reposit found almost – 49% – of agreements ended without any costs incurred by the tenant at all.
Ben Grech, CEO of Reposit, said the figures highlighted how cash deposit schemes did not always provide landlords with the right level of protection because they were capped at five weeks’ worth of rent.
He said: “Our figures show cash deposits are now inadequate across a significant portion of the market and one which is growing, most likely caused by the cost of living crisis. This inefficiency is why we’re seeing a rising number of landlords and agents choose to offer our FCA-regulated product which provides landlords with eight weeks of cover – 60% more than the cash schemes.
“It’s been a tough year for landlords who have been hit with rate rises and growing costs generally, so they find the extra three weeks of cover reassuring. Equally, tenants have faced affordability challenges, struggling to find the up-front cash for a deposit which is often unnecessary when 49% of agreements end without any costs incurred by the tenant, and there are alternative products available.”
I stopped taking deposits from tenants in 2008. after that I explained to all incoming tenants I would pursue them for all arrears and damages through the courts who’d be objective in settling the dispute. I pointed out the effects of a CCJ. I never had arrears, damage or the need to go to court
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Over 2000 tenancies with a Deed of guarantee by a property owner and a video inventory and never been to court.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Tenancy deposit legislation introduced subjective arbitration into the process of disputes between landlords/agent and tenants- it works more for tenants than it does for agents. not worth bothering with, the administration to challenge a vexatious claim is often more expensive than the claim itself
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Interesting advertorial, BUT how many claims did REAPIT pay IN FULL?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
trick question- none
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register