RESIDENTIALlettings
Tenants’ deposits – safer than ever
Steve Harriott, Chief Executive, The Dispute Service, reviews the five year development of tenancy deposit protection.
D
eposit protection is now a fully established feature of the private rented sector. Five years on, the Localism Act has tied up loose ends in the original legislation and we are now in a suitable position to step back, take stock, and
evaluate our progress.
THE PRIVATE RENTED SECTOR – THEN AND NOW PANEL 1 Tenancy deposit protection became a legal requirement for Assured Shorthold Tenancies back in 2007. Between 2007 and 2011 as the number of owner occupied homes decreased from 15.7m to 15.39m, private rented stock increased by close to one million, from 2.8m tenancies to around 3.79m. Social renting also saw a slight increase from 3.9m to 4.04m.
VALUE OF DEPOSITS PROTECTED PANEL 2 The number of deposits protected has increased steadily, from 924,181 in March 2008 to 2,374,385 in March 2012, and the total value of deposits protected has increased from £885m to £2.3bn. The average deposit value has fluctuated between £880 and £979 since March 2008, however the national averages don’t reveal the full picture of significant regional variations across England and Wales.
The number of deposits held has risen from 924,181 in March 2008 to 2,374,385 in March 2012.’
RAISING DISPUTES PANEL 3 The English Housing Survey indicated that the most common reason for the non-return of tenancy deposits was in relation to the property being damaged or requiring cleaning (cited in 55.70 per cent of disputes). TDS data also shows that damage, cleaning and redecoration are the most common reasons given for a tenancy deposit dispute. In the cases submitted to TDS in 2012 cleaning appeared in 52 per cent of cases and damage in 45 per cent.
56 JULY 2012 PROPERTYdrum PANEL 1: TENURE IN ENGLAND AND WALES FROM 2000
Year Owner Occupation Social Renting Private Renting 2001 2002 2003 2004 2005 2006 2007 2008
15.283 15.509 15.638 15.634 15.756 15.765 15.717
2008-09 2009-10 2010-11
15.604 15.579 15.466 15.395
4.226 4.211
4.038 4.024 3.919 3.958 3.976 4.018 4.062 3.896 4.048
Source: English Housing Survey 2001-11 (DCLG 2012a), Welsh Govt Dwelling Stock Estimates 2012
PANEL 2: VALUE OF DEPOSIT PROTECTED
£2,500,000,000 £2,000,000,000 £1,500,000,000 £1,000,000,000 £500,000,000 £0
2.168 2.223 2.353 2.397 2.563 2.683 2.808 3.117
3.228 3.537 3.799
Value of deposits protected
PANEL 3: TYPES OF DISPUTE 2007 2008 2009 2010 2011 2012
Cleaning 50% 52% 49% 47% 49% 52% Damage 36% 45% 43% 39% 43% 45% Decoration 18% 25% 26% 24% 25% 28% Rent Arrears 22% 18% 16% 15% 16% 18% Gardening 14% 13% 13% 12% 11% 12% Other
47% 48% 50% 55% 55% 56% Source: The Dispute Service data 2007-2012
Mar - 08 Sep - 08 Mar - 09 Sep - 09 Mar - 10 Sep - 10 Mar - 11 Sep - 11
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