The number of tenancies ending in arrears of more than five weeks’ rent has jumped to 17%, a deposit alternative service claims.
Reposit 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 from a previous average of 13% in 2023.
During 2024 so far, Reposit found 49% of agreements ended without any costs incurred by the tenant at all.
Ben Grech, chief executive, says the figures highlight 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 comments: “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. “
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Does anyone know a Ben that is GOOD NEWS for landlords?🤔
Still won’t say how many claims were settled in full. 😉
What’s this another advert trying to drum up business for himself.
And that's after accounting for the fact that you have to jump through a million hurdles to claim anything....
Add pets into the mix & 5 weeks rent as a deposit is derisory!
What next - a company selling gap insurance claims car owners are left thousands out of pocket every time they don't take gap insurance?
I might start insuring with the maffia. You smasha the house, we smasha you face. :)
5 weeks was never enough!! Just another problem which is getting worse. I appreciate it may be difficult for tenants to find the deposit, but as a landlord you just know you are going to have a lot of expenses. Tenants can avoid those by leaving the property in a decent condition, as per the agreement, as they found it less fair wear and tear.
Deposits are scarcely worth the effort.
Claiming is a deliberately constructed nightmare and successful, fair and adequate claims are rarer than ‘hens teeth’.
Another significant institutionalised bias against the PRS
I think it is best to increase the rent, which would work out maybe atleast double the deposit amount over the year, with zero deposit. 5 weeks deposit is often not sufficient. I just refunded th deposit, which was most of it. This is rare. Often the tenants do not look after the property. In this case they stayed 5 extra days, so I told them I shall deduct from the deposit rather than they paying me extra.
That's how I do it now, increased rent to cover problems at the end, that way the money is in my bank account.
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