30% of Student Tenants “Unfairly” Cheated Out of Their Deposits

New research carried out among more than 2,000 UK adults by SPCE has revealed the challenges faced by university students when attempting to claim back their deposit, finding:

• 30% of students claim their landlord or lettings agent has unfairly taken money from their tenancy deposit
  • This is nearly double the national average (16%) of Generation Rent who have experienced this
• 27% of uni students have wanted to challenge attempts by their landlord or agent to take money from their tenancy deposit, but did not know the legal course for doing so
  • 33% of students have lost money from a tenancy deposit due to damage that was done to the property by one of their fellow housemates
  • 26% of students have lost money from their deposit due to problems that existed before they had moved into the house or flat
• 34% of students have successfully challenged attempts from their landlord or lettings agent to take some money from their tenancy deposit
• Across the nation, 19% of Generation Rent have lost their deposit because of damage to the property, with this figure rising to 40% for student tenants

When it comes to losing out on tenancy deposits due to unfair claims by the landlord or lettings agent, students fare the worst, according to new research commissioned by student lettings app SPCE.

The independent survey of more than 2,000 UK adults found that 30% of university students (including current students and graduates from the past decade) claim their landlord or lettings agent has unfairly taken money from their tenancy deposit. The figure is nearly double the national average of 16% experienced by renters nationwide. Moreover, 27% of students have wanted to challenge attempts by their landlord of lettings agent to take money from their tenancy deposit, but did not know the legal course for doing so – equating to nearly 1 million people.

These findings reflect a wider industry issue concerning the challenges faced by student tenants and Generation Rent more generally. SPCE’s survey revealed that one in five (19%) UK renters have lost money from a tenancy deposit due to damages being incurred to the property during their time living in it, with this figure doubling to two in five (40%) for UK students.

When delving into the reasons why, the research found a significant proportion of the UK’s student population were losing out on some, if not all, of their deposits due to circumstances beyond their control. A third (33%) of students admitted losing money through a tenancy deposit due to damage that was done to the property by one of their fellow housemates, while a quarter (25%) reported losing their deposit due to problems with the property that existed before they had moved into the house or flat.

The discrimination faced by students is exacerbated further by the significant financial burden of losing part of their deposit. Almost a third (30%) of students have lost more than £250 from one or more tenancy deposits in the past 10 years, with a 22% losing at least £500 from their deposit.

Leon Ifayemi, CEO of SPCE, commented on the findings: “Students make up a significant proportion of the UK’s rental population, yet their experience in unfairly losing their deposits is disproportionately high. As the research shows, this boils down to a number of issues beyond their control – students finding themselves either ill-equipped or simply overwhelmed to navigate the legal process involved in claiming back a deposit. Unfortunately, this only builds upon the unfair characterisation of students as bad tenants.

“Students shouldn’t have to worry about losing their deposit due to the actions of their housemates, or being penalised due to pre-existing damage to the property. For students balancing their studies with work and co-curricular activities, the risk of losing hundreds of pounds at the end of the student year can cause significant stress. Good tenants should be rewarded regardless of whether they are a student, and better communication between landlords and student tenants is key.”

(Source: SPCE)