Recent figures from one of the U.K’s rental deposit schemes showed positive news on tenancy deposit disputes. The figures suggest that only a fraction of tenancy agreements end in disputes over deposits.
The Deposit Protection Service (DPS) stated that a mere 8,495 out of a total 1, 105,619 tenancies ended with its adjudication service having to be used. This is a percentage of just 0.81%.
For all tenancy agreements which ended going through a full dispute process, the figures from DPS make good reading. Over half (54.7%) of deposits disputed through DPS were split equally between landlord and tenant. Almost 27% of deposits were refunded in full to tenants. The figures show that only 18.5% of deposits returned by DPS were paid to the letting agent or landlord.
DPS states that the most common dispute derives from alleged property damage. Other common reasons for a dispute are cleaning (or lack of) and the need for redecoration. Less common requests released in the findings include a dispute over the removal of cockroaches!
DPS director Kelvin Firth issued a warning on the back of the report findings. Firth warns that landlords and agents were similarly as worried as tenants about having a disruptive tenancy agreement. ‘Tenants as well as landlords should be warned,’ Firth said, that they cannot simply, ‘fail to fulfill tenancy conditions’ and then, ‘look for a deposit pay out.’ Landlords should remember to take out comprehensive landlord insurance in order to cover themselves.