Generation Rent has called for fines against landlords who repeatedly make exaggerated deposit claims, presenting a petition with 17,000 signatures to the Secretary of State for Housing, Communities and Local Government.
The tenant organisation is also campaigning for insurance-backed deposit protection to be abolished in England. It notes that a tender for a replacement system, expected by 31 August, has not yet appeared.
Holly Williamson, chief executive of Generation Rent, stated that requiring landlords to protect money in a scheme rather than holding it themselves would make moving home less stressful. She added that imposing fines on landlords for repeated exaggerated claims would deter such behaviour and return money to renters more quickly.
Generation Rent argues that insurance-backed schemes allow landlords to retain interest on deposits and can pressure tenants to accept lower amounts to avoid delays. The organisation estimates its proposals could benefit 300,000 private renters by hundreds of pounds annually.
The group also advocates for the interest earned on an estimated £5.5 billion of tenants' deposits to be used for the benefit of tenants.