Author : Mary-Anne Bowring
The average deposit costs renters around £1,110. And 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 had received their previous one.
According to Which, this means almost half of renters having to take out loans to cover the cost of their deposit when moving home. The consumer champion found that 43% of tenants planning to move to a new rental property had to use a credit card, loan, overdraft, or borrow cash from friends and family to pay for the deposit on their new home. The government now accepts that tenancy deposits are a problem and recently published a call for evidence. More than £4bn of public money is locked up in deposits across England and Wales. So property pundits are now calling on the government to embrace tech solutions to help solve the problem. Ideas for change include:
Ringley has been looking after landlords and their tenants for more than 25 years and created a proptech solution – PlanetRent - because of the cumbersome nature of the tenancy process and tenancy compliance. We know it is hard for tenants to find their deposits and it is equally hard for landlords to ensure 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) and the landlord gets eight weeks' rent cover.
What we would like to see the government set up, is an easily searchable database of troublesome people, ie those who have LOST previous deposit adjudication. We support the call for a single independent adjudicator to preside over disputes between landlords and tenants. Letting agents are already burdened with significant legislative compliance including Ombudsman membership and Deposit Scheme membership - so this would really bring private landlords into line with what agents already have to do. It would be great for the government to offer tax incentives to landlords who opt for deposit alternatives. But the challenge here is to satisfy the 'perfect tenant' who will be guaranteed to lose one week’s rent buying a deposit alternative, but as a perfect tenant would expect to get their deposit back in full. And finally, our view on a single clearing system to manage all tenancy transactions is that this is probably a method to tax any rental income that is undeclared by some landlords!
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.