A study by the Centre for Economics and Business Research recently revealed that one in six UK landlords were not using official deposit protection schemes.
The study suggested that hundreds of thousands of landlords were ignoring UK law, leaving their tenants at risk of losing their deposit money altogether, should they decide to move.
Experts have claimed that approximately £500 million worth of tenants’ rental deposits could be at risk, despite the legislative framework in place to try and protect all parties involved in shorthold tenancy agreements.
Protecting a deposit is fast becoming a key part of granting a new tenancy, and UK letting agencies have a responsibility to ensure compliance.
However, the Centre for Economics and Business Research found that, in cases where properties were not let through reputable companies, or landlords were finding their tenants independently, many were not using approved deposit protection schemes.
Experts have urged landlords and tenants alike to “think carefully” about how they advertise their properties, or where they look to rent a property from.
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