1.5 million renters at risk of losing tenancy deposit
More than 1.5 million renters across the UK could be at risk of losing their deposit, said Comparethemarket.com.
Research by the price comparison site revealed 33% of renters claim their landlord has not placed their money into a Government-backed deposit protection scheme (DPS), despite this being a legal requirement.
A further third (35%) of renters admitted they don’t where their rental deposit is.
Even more worrying, a fifth of tenants claim they don’t even have a contract with their landlord, leaving a significant minority of renters, and landlords, in a risky position should any serious legal issues arise.
Undercovered and at risk
But it’s not just landlords failing to take seriously their responsibilities.
Over a third (36%) of tenants admit they don’t have contents insurance policies in place, which offers protection against burglaries theft and damage, with young people the least likely to take any insurance. Almost half (46%) of 18-34 year old renters failed to take out a contents insurance policy.
Chris King, head of home insurance, at comparethemarket.com said: “It is particularly worrying to see that younger people are disproportionally underinsured, as generations y and z are the most likely to rent for prolonged periods of time before owning their own home.
“It is vital that renters take control by protecting their deposits and also with contents insurance, to protect their possessions. There are a range of competitive contents insurance policies available on the market. We encourage all renters to shop around and find the policy which best works for them.”