Number of tenancy deposit disputes still below 1%

Piggy-Bank-With-CoinThe number of tenancy deposit disputes reached a record high in 2015-16, but still represents less than 1% of all deposits.

Figures from the Department for Communities and Local Government (DCLG) show that in the year to March 2016, the three deposit schemes in England and Wales resolved 28,100 disputes, the highest annual number ever recorded.

These disputes represented 0.82% of total deposits protected by the three schemes between March 2015 and the same month this year.

Since deposit protection became mandatory in 2007, DCLG’s figures show that there have been just under 173,000 tenancy deposit disputes adjudicated by the three protection schemes operating in England and Wales.

One of the organisations, the Tenancy Deposit Scheme (TDS), says cleaning is still the most frequent issue to arise in deposit disputes, being mentioned in 57% of all claims it handles.

Damage to fixtures and fittings features in 51% of claims, followed by redecoration (32%), rent arrears (19%) and gardening (16%).

“Cleaning, damage and redecoration claims feature in many of our disputes and this highlights the need for a comprehensive inventory and check out report which enables landlords to show the condition and cleanliness of the property at the start the tenancy compared with it at the end,” says Steve Harriott, chief executive of TDS.

“Without these it will be very difficult for a landlord to prove their claim for a deduction from the deposit.”

As of March 31 2016 the three schemes operating in England and Wales – TDS, mydeposits and the Deposit Protection Service – protected 3.42 million deposits worth over £3.5 billion.

The average tenancy deposit at this point was £1,041.

TDS reports that tenants get back the entirety of the disputed deposit in around 17% of cases, while landlords win all of the money in 21% of disputes.

It says payments are allocated to both parties in 61% of cases.

Overall, in 2015-16, the average deposit disputed with TDS was £863.40, with 45.5% being returned to tenants and the remaining 54.5% going to landlords and letting agents.

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