"Deposit returns can be a source of friction when tenancies come to an end. Clearly, most renters who’ve experienced this feel their money was kept unfairly"
- Nathan Blackler - Go.Compare
More than half a million renters could have had part of their deposits kept without justification over the past two years, according to new research.
A study has suggested that up to £67.7 million in tenancy deposits may have been unfairly retained in this period. One in five tenants leaving a property reported that a portion of their deposit was withheld, equal to about 722,937 households. Most of these renters believed the deductions were unjust.
The figures were produced by Go.Compare home insurance, which compared its recent renters survey with official UK household data from the Office for National Statistics. The results point to a significant financial loss for tenants and highlight how disputes over deposits remain a common concern.
On average, landlords were found to retain around £125 from each deposit. Applied nationally, that amounts to approximately £90.7 million held back during the two years. Three-quarters of affected tenants, or around 539,528 households, considered the deductions to be unfair.
The findings indicate disparities across income, gender, and age:
77% of tenants on lower incomes felt their deposit was wrongfully taken, compared with 67% of higher earners.
79% of women who had part of their deposit withheld believed it was unjust, compared with 69% of men.
Nearly a quarter (24%) of renters over 54 lost more than £1,000 from their deposit, while just 6% of under-35s experienced the same level of loss.
Nathan Blackler, home insurance expert at Go.Compare, explained: “Deposit returns can be a source of friction when tenancies come to an end. Clearly, most renters who’ve experienced this feel their money was kept unfairly. If this is the case, it means landlords are wrongfully retaining thousands of pounds of deposits.”
He added practical steps for tenants to help protect themselves: “To minimise the chances of losing your deposit, take photos of the property when you first move in and when you leave to show how you left it compared to the start of your tenancy. You can also ask your landlord to sign a checkout inventory that covers the condition of the fixtures and fittings. Make sure all outstanding fees for the property have been paid, too.
“If you do lose some of your deposit but feel it’s been kept wrongfully, you can dispute it via your deposit protection scheme. If your deposit wasn’t put in a protection scheme, you’ll need to go to small claims court. Consider going to Citizens Advice before deciding what action to take, as they could help you to assess your circumstances and decide on the best option going forward.”
