Deposit Protection Five Years On

Five years after tenancy deposit protection became law, an in-depth evaluation of its successful progress has been published by the Tenancy Deposit Scheme.  This shows a rise in protected deposits from less than a £1 Billion to well over £2 Billion, the proportions of deposits protected for all Assured Shorthold Tenancies, and the volumes of deposit disputes.


“Tenancy deposit protection has a twofold aim,” said the report’s author, Steve Harriott, Chief Executive of the Tenancy Deposit Scheme.  “It is there to safeguard money held on deposit and to provide Alternative Dispute Resolution free at the point of delivery for the tenant and saving landlords the time and cost of going to court.”

“It also helps to drive home the importance to both landlords and their tenants of using regulated agents,” he added.


The report shows that over the first five years there has been only a marginal rise in the percentage of tenancies ending with a dispute over the amount of deposit to be returned and it shows that the prime reasons behind disputes adjudicated by TDS have remained largely unchanged except for disputes over damage and decoration. These have risen by ten percent. However, the biggest single area of dispute remains cleaning. 


Disputes are raised almost equally by landlords and their agents, 48%, and by tenants 51% for the Tenancy Deposit Scheme.


The report highlights the difference in awards following dispute resolution. Following adjudications by the Tenancy Deposit Scheme, nearly 60% of the awards are split between the landlord and the tenant and around a fifth go totally to either landlords or  tenants.


Said Steve Harriott on the publication of the Evaluation, “There is no doubt that the concept – new in 2007 - of tenancy deposit protection has been a success. Next month will see the start of negotiations for new deposit protection scheme contracts to run for the next five years. The successful bidders for these contracts will be able to build on a remarkably strong base.”


The report, “Tenancy  Deposit Protection – An Evaluation Five Years On”, is available here on the TDS website.






20th June 2012

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