Deposit alternative scheme backs Generation Rent call

One of the highest profile deposit alternative services has thrown its weight behind a call by Generation Rent activists to reform the deposits system in the private rental sector.

Earlier this week Generation Rent claimed a survey showed almost one in four tenants saying their deposits were “unfairly withheld”.

Dome 22% of the renters responding to the group’s survey accused landlords of making “unfair deductions” deposit at the end of their tenancy, although only 4% used the formal dispute resolution process to seek to reclaim the money. 

The activists also claimed that 32% of those renters who did challenge landlord deductions got all their money back, suggest figures from one deposit protection scheme. 

Now the flatfair deposit alternative scheme has backed the call for reform, with chief executive Gary Wright saying: “We believe the current deposit system is outdated and fails to protect the interests of both tenants and landlords. Locking away hundreds or even thousands of pounds for months on end creates financial pressure and unnecessary tension, especially at the end of a tenancy.”

He continues: “These latest findings [from Generation Rent] are a wake-up call. But where regulation can take years, innovation can lead the way. Our mission … is to create a rental system that works for everyone—fairer for tenants, safer for landlords and driven by technology that puts people first … [we are] committed to reshaping the rental landscape, ensuring renters no longer face an outdated system of locked-up deposits and inconsistent decision-making. 

“By offering choice, clarity and accountability, flatfair believes that a better way forward is not only possible—but already here. The future of renting shouldn’t be about winners and losers. It should be about clarity, confidence, and choice.”

Generation Rent says it spoke to 2,000 private renters for its survey and claims 46% didn’t know they could challenge deductions on their deposit through a protection scheme. Meanwhile, 7% of all tenants accused their landlord of not protecting their deposit at all.

The activist group is demanding:

• A 14-day deadline: Landlords or agents should be required to return deposits or make a claim on them within 14 days of tenancy end.
• Mandatory dispute resolution: If a tenant wants to use the protection scheme’s formal dispute process (ADR), the landlord should not be allowed to refuse to take part.
• Faster decisions: All deposit disputes should be resolved within 10 working days.
• Immediate partial returns: Any part of the deposit that isn’t being disputed must be returned to the tenant immediately, without waiting for the rest to be settled.
• Effective penalties: Landlords and agents who break the rules – or make repeated excessive deductions – must face meaningful penalties.
• Direct payment to the scheme: Tenants should be able to pay their deposit direct to the scheme, which will make it easier for schemes to send them timely information about protections and how to dispute unfair claims.
• Enforcement of non-protection through the new Private Landlord Ombudsman: This would make it easier for tenants, who must currently take their landlord to court if the deposit has not been protected.

This article is taken from Landlord Today