Bid to stop landlords keeping deposits

TENANTS are losing hundreds of pounds to rip-off landlords who refuse to pay back rent deposits, a report warns today.

Almost £800m is being held at any one time without any form of statutory protection, with one in five tenants losing all or part of their money and students being among the worst hit.

The Shelter and Citizens Advice report calls for a national scheme for tenancy deposits, which average £510.

They are backed by housing and tenancy groups, as well as the Consumers' Association and 148 MPs who want the Government to introduce a mandatory Tenancy Deposit Scheme.

Shelter's Ben Jackson said: 'Each year tens of thousands of people lose out to this scam and are often forced into crippling debt to pay the next deposit. Yet frequently tenants simply accept this as one of the hazards of renting. There is no excuse to let this rip-off continue.'

Government research shows that each year 127,000 tenants have difficulty getting deposits back and £20.1m is wrongfully withheld.

At present, the only way tenants can retrieve their money is by issuing court proceedings. The new report says many simply write off the loss because this process is too costly, slow and daunting.

Citizens Advice chief executive David Harker said: 'Too many landlords treat rent deposits as their own money. Many do not even bother to give tenants a proper reason for failing to pay it back.'