The average deposit to renters is over £1,100. This sum is often doubled due to delays while tenants try to get their previous deposit back. This leaves a third of renters having to pay a new deposit before they receive their previous one back.
In many cases this results in almost half of renters having to take out loans to cover the cost of their deposit when moving home. TAlmost half of tenants who wish to move to a new rental property jave had to use a credit card, loan, overdraft or borrow cash from friends and family to fund the deposit on their new home. The government has accepted that tenancy deposits are a problem. More than £4bn of public money is locked up in deposits across England and Wales. So property experts are now calling on the government to embrace tech solutions to help solve the problem, including:
Ringley has been looking after landlords and their tenants for almost 30 years and we have created a proptech solution – PlanetRent. This has been devised to manage the ever changing nature of the tenancy process and tenancy compliance. We realise that it is difficult for tenants to fund their deposits. At the same time it is equally as difficult for landlords to make sure that their properties don't suffer damage beyond 'fair wear and tear'. PlanetRent offers landlords the option to embrace deposit-free renting so tenants can opt to pay the equivalent of one week’s rent (as a deposit alternative) whilst the landlord receives eight weeks' rent cover.
We would like to see the establishment of an easily searchable database of troublesome people, namely those who have lost previous deposit adjudication. We encourage the call for a single independent adjudicator to preside over disputes between landlords and tenants.
Letting agents are already over-worked with significant legislative compliance including Ombudsman membership and Deposit Scheme membership. This would bring private landlords into line with the agents and their existing roles.
The government should offer tax incentives to landlords who opt for deposit alternatives. The challenge here is to meet the needs of the 'perfect tenant' who will be guaranteed to lose one week’s rent in buying a deposit alternative, but, being perfect, they would expect to get their deposit back in full.
The other benefit of a single clearing system to manage all tenancy transactions, is that it would be almost impossible to have undeclared income hidden from HMRC!
Mary-Anne Bowring FIRPM FRICS FARLA FCABE Founder/Head of Asset Management
Strategic partnerships, holistic delivery/ opportunities, growth, value engineering, thought leadership
Ian Barber MD BTR Mobilisation & Leasing
Runs HQ & site lease-up teams. Drives rent pricing, mobilisation, marketing, happy residents!
Jon Curtis MRICS Head of Building Engineering
Chartered Building Surveyor. Lectures on EWS1 & building safety. Runs CapEx programmes.
Kate Robinson MIRPM MD Blocks/FM Management (London Region)
Master plan setup, ops and staffing and resident engagement. ISO45001 champion.
Lee Harle Partner Ringley Law
Plot conveyancing. Debt litigation. Group Company Secretary.
Anthony Kingdon MIRPM AssocRICS MD Blocks/FM Management (North Region)
Stakeholder engagement. Mixed tenure specialist. Budget management. Plant audit, PPM compliance.
Chris Georgalis MRICS Head of Commercial Valuation
Chartered Valuer. Rental valuations: retail, leisure. IRR modelling and valuations for secured lending. Compulsory purchase & rent reviews
Nichola Pughe MRICS Head of Residential Valuation
Chartered Valuer. Rental development & mixed use valuations, IRR modelling. Leasehold enfranchisement specialist
Libby Chen MSc Compliance Manager
Operational Plant & Equipment strategy PPM Compliance lead, Asset tagging Client major projects
Dipesh Parekh Director PlanetRent
Customer centric, vertically integrated PropTech/fin-tech solutions.
Leana Aristodemou MIRPM MARLA AssocRICS Strategic lead: ESG & Asset Business Plan delivery
Financial modelling, valuation analyst to support underwriting & fund reporting.
Natalie Birmingham Helpdesk Support Manager
Trainer & Helpdesk Manager: people, systems,contractors. ISO45001 supply chain accreditation.
Steve Norman Planning Director
Land due diligence (opportunities & constraints) Has contributed to a number of award winning schemes.