Warning issued for UK renters who've used deposit scheme
Almost a quarter of tenants have had money withheld unfairly, with 46 per cent of renters said they did not know they could challenge deposit deductions they deemed to be unfair.
The Guardian reports just four per cent have used the formal dispute resolution process to try to reclaim the money.
One of the reasons why I live in the north of the UK is because of living costs.
Its far much cheaper & comfortable up here than in London.
Its also easier to afford a 15 year mortgage where you pay less than £500 instead £1050 for rent. pic.twitter.com/V9XqVdJO8e — Zimbo_Factual (@fracta70911) July 16, 2025
Dan Wilson Craw of Generation Rent said the system was 'failing renters who are put off from challenging unfair deductions by unclear rules, and threats and delaying tactics from landlords'.
He added: 'Ultimately, that puts millions more in unscrupulous landlords' pockets. The uncertain timescales and unclear rules of the deposit system, as well as obstructiveness and threats from some landlords, mean that accepting unfair deductions to get some cash back quickly can feel like the better option.'
Your landlord must put your deposit in a government-approved tenancy deposit scheme (TDP) if you rent your home on an assured shorthold tenancy that started after 6 April 2007.
'Because challenging deposit deductions is usually worth it, renters put off from doing so are losing hundreds of pounds of their own money,' said Wilson Craw. 'The government's review of deposit protection is an opportunity to build trust in the system so tenants have the confidence to challenge unfair landlord claims.'
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A Ministry for Housing, Communities and Local Government spokesperson said: 'It is completely unacceptable to unfairly withhold a tenancy deposit, and this government is cracking down on rogue landlords who make tenants' lives a misery.
'Our renters' rights Bill will give councils stronger investigatory powers, for example making it easier to get financial information from landlords suspected of abuses.'
If you do not rent your home on an assured shorthold tenancy, your landlord can accept valuable items (for example a car or watch) as a deposit instead of money.
The items will not be protected by a scheme.
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