The Bank Of Mum And Dad Funds Deposits For Many UK Tenants
http://www.rentmanagement.co.uk/articles/2/1/The-Bank-Of-Mum-And-Dad-Funds-Deposits-For-Many-UK-Tenants/Page1.html
By Sean Tyrer
Published on 21/12/2007
UK tenancy rent deposit regulations may support parents by helping them to be independent from the obligation of funding their child's deposit, it has been asserted.
The Bank Of Mum And Dad Funds Deposits For Many UK Tenants
The UK's Deposit Protection Service (DPS) has reported that many tenants responding to a recent Facebook survey said that they had been forced to ask parents to assist with the payment for their rent deposit.
This is apparently due to the fact that almost one third of tenants do not receive their deposit back at all, with a similar percentage having to wait a month before they are reimbursed, the study found.
"Often tenants are stuck in a 'catch 22' when it comes to moving home as they need to move out to get their deposit back but can’t move in to a new property until they have a lump sum," said Kevin Firth, client services director at the Deposit Protection Service.
"The Bank of Mum and Dad is often the only viable alternative to an expensive loan or dipping into savings.
"The Deposit Protection Service not only ensures tenants have their deposits returned – they also receive them quickly and efficiently," Mr Firth added.
More landlords are now complying with the property tenancy deposit schemes despite initial take-up being poor, it was announced last month.
A Rent Management Article
This is apparently due to the fact that almost one third of tenants do not receive their deposit back at all, with a similar percentage having to wait a month before they are reimbursed, the study found.
"Often tenants are stuck in a 'catch 22' when it comes to moving home as they need to move out to get their deposit back but can’t move in to a new property until they have a lump sum," said Kevin Firth, client services director at the Deposit Protection Service.
"The Bank of Mum and Dad is often the only viable alternative to an expensive loan or dipping into savings.
"The Deposit Protection Service not only ensures tenants have their deposits returned – they also receive them quickly and efficiently," Mr Firth added.
More landlords are now complying with the property tenancy deposit schemes despite initial take-up being poor, it was announced last month.
A Rent Management Article