Cash crisis! Nationwide calls for radical reform of rent deposits

The Nationwide has today called for the rental deposits system to be reformed after revealing that it takes renters on average nearly two months to get their deposits back after their tenancy ends and that one in five have to wait more than three months. The building society  is calling for greater consistency in the treatment and return of deposits so that tenants can get their deposit back faster, and a more practical approach by landlords and letting agents to handling them. “We need to consider more pragmatic solutions, including transferring deposits from one tenancy to the next, providing appropriate short-term loans or a guarantee”, says Paul Wootton (below), Nationwide’s Director of Specialist Lending. “Nationwide is already working with other organisations who are equally aware of the need for a practical approach that meets the needs of both tenants and landlords, without being an obstacle to moving home.” Nationwide’s research among 2,000 renters found that 4% of those canvassed reported waiting for more than six months for a rent deposit to be returned, while more than a third of renters had previously lost some or all of their tenancy deposit. The most common reasons for deposit deductions are property cleaning,…

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