9 out of 10 tenants get money back in deposit disputes

In April 2007 tenancy deposit protection legislation was introduced to ensure landlords would not be able to keep deposits at the end of the tenancy without good reason.

Two years on, it appears the legislation has provided a consumer victory for tenants. On the whole tenants’ deposits are no longer being unfairly withheld. And where they are, the law has teeth.

Figures from mydeposits.co.uk show 91% of dispute cases settled by the scheme’s independent adjudication service found in favour of the tenant. The average amount in dispute was £733, which is significantly lower than the average deposit of £1052.

In only 9% of cases landlords and letting agents were able to withhold the full deposit.

Eddie Hooker, Chief Executive, mydeposits.co.uk, said: "Mydeposits.co.uk exists for tenants. We can now clearly see the protection laws are working. All cases are decided fairly using evidence presented by both parties.

"It is also important to remember that most deposits are handed back at the end of the tenancy without any problems. This is a clear signal that, for the most part, landlords and tenants make the right decisions with regards to deposits. In fact, out of the 335,000 deposits protected, only a tiny fraction (0.35%) were independently adjudicated."

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