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Deposit Disputes When Tenancies End are Rare

July 9, 2014 | Landlord News  

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Figures produced by the Deposit Protection Service (DPS) show that the number of tenancies that end in deposit disputes between tenant and landlord is miniscule compared to the number of overall tenancies. Although data from January suggests that approximately one in ten tenants has had a landlord or letting agent propose a deduction, only around one in ten of those proposed deductions are disputed.

The DPS have recorded that out of over a million tenancies, only 8,945 needed to use their adjudication service at the end of the tenancy – equivalent to just 0.81%.

The other two deposit schemes, Mydeposits and TDS, also have very low percentages of tenancies ending in dispute, with 1.02% and 0.87% respectively.

The most common reason for a dispute is alleged damage to the property, with cleaning and redecoration costs following close behind.

The DPS figures show an unbiased, fairly balanced spread of disputed deposit outcomes. 18.5% of deposits were awarded in full to the landlord or letting agent, while 26.8% were refunded in full to the tenant. 54.7% of disputed deposits were split between landlord and tenant.

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