Four in 10 tenants say that they’ve needed to borrow money in order to pay a tenancy deposit, according to new figures from the leading tenancy deposit protection scheme, my|deposits.
The research, part of my|deposits’ quarterly Tenancy Deposit Protection (TDP) panel, also shows that the average tenant has paid £2,344 on tenancy deposits since renting property.
Of those who have borrowed to pay a deposit, a quarter say they’ve had to borrow from their parents when moving in to a new property, 10% from friends, and a further 8% from a bank or a payday lender.
my|deposits’ findings come in the same week that the Government’s Money Advice Service found that almost nine million UK adults are living with debt problems.
Eddie Hooker, CEO of my|deposits, said: “Tenancy Deposit Protection (TDP) was introduced to protect the consumer and their deposit money, so it’s a worry to learn that a considerable number seem to struggle and have to borrow in order to secure a new rental property.
“Our research findings highlight the importance that tenants check any money handed over as a deposit is properly protected within one of the Government TDP schemes, otherwise they could risk losing out at the end of the tenancy which will only make matters worse.
“With my|deposits, tenants can rest assured that their deposit is protected and that they’ll get their deposits back quickly at the end of the tenancy, making it less likely they’ll need to borrow money to place a deposit on their next rental property. Tenants should visit www.mydeposits.co.uk/tenants to explore the dedicated portal containing information and helpful resources on a range of deposit protection topics”.
Carolyn Uphill, chairman of the National Landlords Association (NLA), said: “It seems that problems with money are becoming increasingly common throughout the UK and the issue is a worry for tenants and landlords alike.
“This is why the NLA has launched its Effective Letting Campaign, which aims to highlight the importance of taking a best practice approach to letting property to ensure a happy, healthy tenancy for everyone involved.
“Adopting best practice at every stage of the letting cycle will reduce the likelihood of common problems arising. The latest part of our campaign is centred on best practice in tenancy deposits and documentation, so landlords should visit www.landlords.org.uk to find out more”.