The Government is facing renewed calls to introduce a deposit protection scheme for the private rental sector.
The housing charity Threshold and the Union of Students in Ireland (USI) said the scheme was needed to keep deposits safe and protect tenants from scams.
The scheme would see deposits held by a third party, such as The Residential Tenancies Board, rather than by landlords.
Threshold Chairperson Aideen Hayden said the charity deals with disputes over deposits on a daily basis.
She said the Government committed to tackling to issue in 2011 – with successive housing ministers promising to implement the scheme.
“If you stole a bottle of shampoo from a supermarket, the full measures of the law would be taken against you and yet, people feel that they can keep deposits with impunity,” she said.
“So we are basically saying that, where it happens that somebody makes absolutely no effort whatsoever to return a deposit to somebody who may have handed over their life savings, that that is a scam and is something that should be legally challenged and prevented.”
- Establish a legal definition for rental deposits
- Limit rental deposits to the value of one month’s rent
- Introduce a Deposit Protection Scheme, with deposits lodged with an independent third party
The legislation allowing for the introduction of a Deposit Protection Scheme was passed in 2015 and Ms Hayden said the Government must now follow through on its commitment.
She said the loss of a deposit can have a sever effect on a tenant – with the threat of homelessness a real worry for some.
“A lady Alison, she had put up a deposit of €1,400 – she had received help from her family to put up that deposit,” she said.
“After nine months she did get her deposit back by going to the RTB but in the meantime, she was forced to go home to live with her family, share a room with her sister and her young daughter and was lucky not to find herself in homeless circumstances.
“So these are the people who are most at risk in the event that a deposit is retained.”
We welcome the support of @TheUSI in calling for the government to implement immediately a #Deposit Protection Scheme to safeguard rental deposits and protect tenants in the private rented sector. Please lend your support and sign our petition https://t.co/zVnALejUoc@Lornafitz3 pic.twitter.com/FnsRbosTrD
— Threshold (@ThresholdIRE) August 20, 2019
USI President Lorna Fitzpatrick said the shortage of student accommodation has left students “especially vulnerable” to fraud and rental scams.
“A Deposit Protection Scheme would minimise their exposure to rental fraud and would also be of benefit to international students who may have to return to their home country without securing a return of their deposit,” she said.
It comes as a new report found that rents rose by 6.7% around the country in the first six months of this year.
The latest Daft Rental Report found that rents in Dublin are now 40% than their previous peak in 2007.
It found that there are 20,000 fewer homes available to rent now than there were 10 years ago.
