Alan Whitehead MP

3-May-2004

Alan Whitehead’s survey of Southampton tenants shows overwhelming support for tenancy deposit scheme

A survey by Alan Whitehead MP has shown overwhelming support from Southampton tenants for a tenancy deposit scheme. Residents in high tenancy areas of the city were sent questionnaires asking firstly, if they ever had difficulties in getting some or all or a tenancy deposit back, and secondly, whether they would support a scheme whereby a deposit for moving in was kept with a regulated third party. At the moment there is no statutory regulation of deposits which are generally held by the landlord or agent.

Replies to the questionnaire showed half of tenants had experienced difficulties getting a deposit back and over 90% were in favour of a tenancy deposit scheme.

Problems encountered by tenants as revealed by the survey included:
• A landlord who gave a deposit back in the form of cheques which then bounced
• Excessive charges being made for cleaning
• Landlords being reluctant to return deposits
• Charges being made for general wear and tear. One reply said the landlord had complained the tenant had ‘gone up and down the stairs too much’ and worn a rut in the stair carpet.

Alan Whitehead MP, for Southampton Test, said
“The overwhelming majority of landlords in Southampton let out well maintained properties at reasonable rents, and deal fairly with their tenants. But there are some who do not, and this survey shows that in the area of tenancy deposits, there are some problems. It would be fairer for both tenants and good landlords if the deposit was held by a third party - the good tenant would know their deposit would be returned, and the good landlord would know they would be recompensed for damage. In the light of what I've heard from this survey, I will be redoubling my efforts to press for changes to legislation to ensure this happens.”

ENDS

Notes to editors

Alan Whitehead’s survey had 60 replies from questionnaires delivered to approximately 500 homes in areas of high multiple occupation. Of those 60, 30 had experienced problems with getting their deposit back and 54 were in favour of a tenancy deposit scheme where the deposit would be placed with a regulated third party. Some of those who replied may be available for interview.
The payment of a bond or deposit is a common requirement in the private rented sector (PRS). Usually equivalent to a months rent, the deposit covers the landlord against such eventualities as a tenant damaging the property or leaving it in an unsatisfactory condition at the end of a tenancy. In shorthold lettings, more than 80 per cent of tenants are generally required to pay a deposit. (source, ODPM)
A tenancy deposit scheme would involve placing the deposit with a regulated third party to help deal with rented deposit disputes in the private rented sector where no statutory regulation currently exists. Almost £800m of tenants' money is being held by landlords in England without any form of statutory protection. (Source, Shelter and CAB)

In a Parliamentary written answer, Housing Minister Keith Hill revealed 127,000 tenants claimed their deposits were withheld unreasonably in 2002-03.
Contacts
Sam Goold in the constituency office on 023 8023 1942 / 07833 732 699
Alan Whitehead’s London office on 020 7219 5079