Stolen tenant deposits edge closer to £1 million mark

Stolen tenant deposits edge closer to £1 million mark

According to the latest data, landlords and letting agents have been convicted of stealing almost £850,000 of tenancy deposits so far in 2017– with the average theft totalling almost £50,000.

Renting reformer and zero deposit pioneer Ajay Jagota keeps a running total of the cash value of deposits criminal letting agents have been convicted of stealing, which he publishes on a quarterly basis.

By the end of the third quarter of 2017 overall thefts totalled £847,227 – an average theft of £44,591 per conviction.

At least 24 rogue letting agents and Buy to Let landlords have been convicted of offences relating to the theft of deposits in 2017 – at an average of more than two a month.

Notable recent convictions in include:

 - Lee Grace of Kings Hill letting agents in Kent, sentenced to 8 months in prison after being convicted of stealing £45,000 of deposits despite previous convictions for similar offences.

- Landlord Shyam Popat of Brent, and Letting Agents Green Line of London, both convicted of a number of illegal renting practices including inappropriate conduct relating to tenancy deposits.


Letting agent Simon Cawley, formerly of Severn Sales and Lettings in Worcester, will stand trial next year on seven counts of fraud related to tenancy deposits.

Research from deposit replacement insurance firm Dlighted last year showed £1,018,100 of deposits were stolen in 2016 - with at least one landlord or letting agent convicted every single month. 2017’s figures remain on course to exceed this figure.

Ajay, founder of Dlighted, had this to say: “Not only do deposits drive up the cost of renting - hurting landlords as much as anyone by making it harder to find tenants while providing feeble protection against unpaid rent or property damage – they make criminal behaviour easy.  

They hurt letting agents too, leaving them vulnerable to the huge reputational damage of convictions like this or exposing them to potentially bankrupting losses and costs. As I’ve said time and time again, the very worst part of this is that these figures don’t even start to show the true scale of deposits being misused, misplaced. misappropriated or plainly and simply stolen.

We’re currently investigating another case where tens of thousands of pounds of deposits appear to have vanished, and that’s before we consider the widespread but unacceptable practice of letting agents using deposit cash for day to day business expenses.

Zero deposit means zero risk. Zero risk of mounting rent arrears because of our rent guarantee. Zero risk of deposits not covering the cost of property damage due to the £500,000 of cover our deposit replacement insurance offers. And zero risk of tenant’s cash being pocketed by rogue letting agents and landlords”

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Scott Garnet 06 Nov 2017

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richardrawlings
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What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
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A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
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We have seen a surge in instructions over August and that should continue into September too.

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