Almost half of private renters who have dealt with a letting agent in the last three years say they have experienced rule-breaking behaviour according to latest research from Citizens Advice.
The charity found that 48% of renters who used a letting agent – equivalent to almost four million people – encountered practices that breached existing rules, raising fresh questions about standards and enforcement in the private rented sector.
The findings come just weeks after the implementation of the Renters’ Rights Act, with Citizens Advice warning that the success of the legislation will depend on stronger regulation and enforcement across the lettings industry.
The research suggests poor service remains widespread. Among renters who experienced an emergency repair issue, such as a gas leak, unsafe wiring or a broken front door, 68% waited longer than 24 hours for action from their letting agent, while 29% said urgent repairs were never resolved.
UNLAWFUL PRACTICES
The charity also identified examples of potentially unlawful practices. More than half (51%) of tenants using a zero-deposit scheme said they were told they had to use the product in order to rent a property, while others reported being charged fees that were banned under the Tenant Fees Act.
Deposit disputes also remain a source of frustration, with 55% of renters reporting that it took longer than two weeks to receive all or part of their deposit back after moving out.
Citizens Advice said poor standards were having financial and personal consequences. More than a quarter (27%) of tenants facing emergency repairs incurred additional costs or higher household bills, while 43% said the experience had negatively affected their mental wellbeing.
The research also highlights ongoing affordability pressures within the rental market. Almost a third (32%) of private renters said they had borrowed money or taken out a loan to cover rent during the last year, while 29% said they had cut back on essentials to meet housing costs.
ROCK-BOTTOM SERVICE
Tom MacInnes (main picture, inset), Director of Policy at Citizens Advice, says: “Private renters are forking out more than ever to put a roof over their heads, and in return they get a rock-bottom service from letting agents.
“Nobody should be left to live in dangerous conditions for days, have to fight for money they’re owed or be charged illegal fees. But our advisers are helping tenants with these kinds of problems regularly.
“The new Renters’ Rights Act is a huge moment for private tenants – a reform Citizens Advice has long campaigned for. But this landmark legislation will only deliver its true potential if the government holds letting agents to account with better regulation and tougher enforcement of the existing rules.”
GREATER TRANSPARENCY
Sam Reynolds, CEO of Zero Deposit, says: “Reports of tenants feeling pressured into purchasing deposit alternatives are concerning and highlight the need for greater transparency and regulation across the sector.
“The challenges raised by Citizens Advice aren’t new and, as we’ve advocated for over many years, highlight the need for the regulation of the deposit alternative category.
“The issue comes back to product fundamentals. There is a clear distinction between deposit alternative products that are designed with consumer protections at their core and those that are not. This means tenants are protected from mis-selling and pressure-selling practices, while landlords have confidence in the security and oversight behind the product.”
“We do not see any of the letting agents we partner with committing any of the practices flagged by Citizens Advice.”
And he adds: “Importantly, our product cannot be sold as a mandatory requirement, which gets to the core of the issues flagged by Citizens Advice – it is explicitly designed to guarantee that tenants are always presented with a genuine choice between a traditional cash deposit and our alternative.
“We do not see any of the letting agents and operators we partner with committing any of the practices flagged by Citizens Advice in this study.
“We conduct thousands of customer satisfaction surveys and mystery shopping exercises every year, and work closely with our agency partners to ensure the product is introduced and explained consistently, transparently and in line with best practice.
“We welcome greater regulation of the deposit alternative sector in order to establish clearer standards, improve consistency across the market and provide stronger protections for tenants and landlords alike.
“Good providers should have nothing to fear from higher levels of scrutiny and regulation, which will raise standards across the sector as a whole.”
