Housing charity calls for deposit protection scheme for tenants

The charity says that 729 renters got in touch with Threshold last year regarding issues with their deposit refunded from their landlord. File photo

A protection scheme to ensure a tenant receives their deposit at the end of their tenancy is needed in Ireland, according to the national housing charity Threshold.

In releasing Threshold’s latest Impact Report, covering the final quarter of last year, the charity welcomed the inclusion of a register of rental prices in the Programme for Government. However, it also called for the introduction of a deposit protection scheme, similar to what is in place in the UK.

The charity says that 729 renters got in touch with Threshold last year regarding issues with their deposit refunded from their landlord. It now seeks a scheme which would involve deploying a third-party custodial model to ensure a deposit is returned to the tenant at the end of their tenancy.

The charity says that where a landlord did need to claim expenses after the tenancy, they could provide a proof of expense to retain some of the deposit, which would ensure greater transparency.

Threshold’s National Advocacy Manager, Ann-Marie O’Reilly, said: “Such a scheme would alleviate the stress and financial hardship of many renters each year. 

By introducing a custodial scheme, there would be greater transparency, fairness and efficiency when it comes to deposits, ensuring that tenants can access their funds promptly and without dispute. 

This is a straightforward solution, and its implementation would mark a significant step forward in bringing stability and security to the private rental sector. 

Having advocated for the register of rental prices, Threshold says it “would allow prospective tenants to see at what price a property was previously let, meaning they could question any significant increases”.

Ms O’Reilly said: “A rent register will bring greater clarity to renters and will help minimise unlawful rent increases by landlords.” 

The report comes as the new government takes office on Wednesday.

The report showed that there were over 8,800 households across the country supported by the charity in the final quarter of 2024, with tenancy termination remaining one of the top concerns for renters. The majority of those cases related to landlords planning to sell their rental properties.

Other concerns included withheld deposits and unaffordable rent increases that sometimes breached the 2% limit in rent pressure zones.

Threshold says it prevented 1,018 households — comprising 1,300 adults and 1,060 children — from entering homelessness between October and December.