"Clueless" tenants' deposits at risk

07/08/2009

Britain's tenants remain vulnerable to losing their deposits from unscrupulous landlords, due to their lack of knowledge about laws designed to protect them.

According to mydeposits.co.uk, an organisation which covers initial deposits from renters, many people remain completely unaware that the legislation exists.

Figures from the firm reveal that there could be around 400,000 households who do not have any form of deposit cover - effectively meaning that their landlord can refuse to pay them their money back when they move out.

Eddie Hooker, chief executive at mydeposits.co.uk, said: "Some tenants seem to be ‘clueless' about tenancy deposit protection. They need to be aware of what is happening with their money, you wouldn't just hand £1,000 over to a stranger without finding out what was going to happen to your money, why is a deposit any different?

"If in doubt ask your landlord or letting agent immediately."

The warning comes at a time when Britain's homeowners, including landlords, are finding it harder to pay off their mortgages than before.

Credit crunch conditions have led to lenders becoming more picky about who they approve loans for - and house prices have fallen by around ten per cent in the past year.

Tags; Housing Debt and Bills, Recent Graduate Debt, Credit Card Lifestyle,

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