Nationwide survey shows 0% of landlords think that deposit schemes are designed in their favour A startling zero per cent of landlords said they felt that deposit schemes are designed in their favour over tenants, according to a new survey released today by digital inventory platform, Imfuna. Just over half (54 per cent) said that they thought current schemes favoured tenants, while 35 per cent claimed that neither party benefitted from the schemes.
Nationwide survey shows 0% of landlords think that deposit schemes are designed in their favour
A startling zero per cent of landlords said they felt that deposit schemes are designed in their favour over tenants, according to a new survey released today by digital inventory platform, Imfuna. Just over half (54 per cent) said that they thought current schemes favoured tenants, while 35 per cent claimed that neither party benefitted from the schemes.
Letting agents also largely mirrored that sentiment; only 20 per cent said that the schemes, in their current format at least, favoured landlords and 52 per cent said the balance has been tipped in favour of tenants. And, a further 22 per cent felt that the schemes benefit ‘neither’ party.
The statistics have emerged after a nationwide survey of landlords, tenants and letting agents, and follow the announcement of the new Localism Bill which came into effect on April 6th. The new act means all landlords now face large fines of up to three times the deposit if it is not registered with a tenancy deposit scheme within 30 days. The ruling, passed by the Government’s Department for Communities and Local Government will also see landlords unable to seek possession of their property using a section 21 notice until the penalty is settled.
Imfuna creator, Jax Kneppers comments: “The survey presents a picture of landlord disenchantment with the deposit schemes. The fact that not a single landlord surveyed felt they were designed in their favour, shows that there is still some work to be done by all parties in order to democratise the inventory process and ensure that everyone involved feels they are supported in equal measure.”
Landlords beware, tenants be aware
Overall awareness of the deposit schemes was found to be high amongst landlords (99 per cent) and lettings agents (88 per cent). Tenant awareness levels were much lower however, only 43 per cent were aware of the schemes before their tenancy began.
This lack of knowledge translated into the take-up of the schemes; nearly half (49 per cent) of the tenants surveyed claimed they have not taken part in a deposit scheme.
Furthermore, 37 per cent of landlords, compared to 78 per cent of tenants, believe deposit schemes are an effective tool for minimising conflict between landlords and their tenants. Whereas just 19 per cent of landlords and 36 per cent of letting agents believe deposit schemes reduce the time taken over disputes, indicating the process still isn’t working.
Kneppers adds “The new April 6th ruling places an even greater emphasis on adhering to tenancy deposit schemes regulations. A comprehensive and robust inventory will help arm landlords with the necessary information and ensure they aren’t further penalised when it comes to the check-in / check-out process.”
Deposit schemes heavily relied on
The figures show that when disputes arise, people look to deposit schemes for help, 26 per cent of landlords, a further 26 per cent of letting agents, and the majority (57 per cent) of tenants believe deposit schemes provide a fair resolution when disagreements arise.
Despite deposit schemes being the preferred go-to for resolutions, some tenants still think they are getting a raw deal, 68 per cent felt dispute outcomes were in favour of the landlord / letting agent, compared to only 10 per cent of landlords, and 19 per cent of letting agents. Which shows some educational work needs to be done around how the schemes work amongst tenants.
Interestingly, nearly half of letting agents (48 per cent) and 30 per cent of landlords reported that they have settled individual disputes privately, without the aid of a deposit scheme.
Finally, and perhaps on the contrary to the views of many, 42% of landlords admit to having never had a deposit dispute with a tenant, with a quarter (24%) of letting agents reinforcing this.
Kneppers concludes: “There is also a case for making use of the technology and expertise available to make the difference in deposit disputes. This is a really exciting time for the property sector which is on the verge of a technological revolution, and we will all soon feel the benefits.”
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