Landlords face renewed criticism as campaigners accuse them of unfairly withholding part or all of tenants’ deposits.
Campaigners claim the deposit scheme is lining the pockets of “unscrupulous landlords” by failing renters.
Dan Wilson Craw of Generation Rent, the campaign group which conducted the research, 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.”
The research, based on a nationally representative survey of 2,000 private renters, found that a quarter of tenants who did not challenge unfair deductions said their landlord either threatened to make a larger claim if they raised a dispute, refused to take part in the adjudication process or had not protected the deposit in the first place.
According to the latest data from one deposit protection scheme, TDS, 77% of tenants got some of their disputed deposit back and 32% got all of it back. Generation Rent analysis found tenants who disputed deductions won 79% of the disputed money back on average.
Craw continued: “Because challenging deposit deductions is usually worth it, renters put off from doing so are losing hundreds of pounds of their own money.
“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.”
Ministers have said they were reviewing the system and “identifying areas for improvement”.
Generation Rent said it wanted to see a 14-day deadline for deposits to be returned at the end of a tenancy and landlords to be legally compelled to take part in a dispute resolution if a tenant pursued it, with disputes resolved within 10 days.
It also said landlords and agents who broke the rules, or made repeated excessive deductions, should face “meaningful penalties”.
A Ministry for Housing, Communities and Local Government spokesperson, told the press: “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.”
Landlords and agents will now be legally required to arrange a free one hour meeting with each tenant to go over the tenancy agreement and prescribed information before each tenancy starts. Also an hour for each guarantor and any of their knowledgeable friends.
Deposit Schemes increase fees by 250% to cover additional staff required to ensure disputes can be settled within 10 days. Rents increase by exactly the same figure. Spread out across 12 months.
Separate unconnected research discovered that 25% of people do not read legal documentation before signing.
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You can get statistics to tell you anything, can’t you? I wonder who they surveyed, exactly?
Funny isn’t it? We agents very rarely get problems with bad landlords and bad tenants, presumably because managed landlords opt for managed services because they know they have many responsibilities, and our tenants have to pass referencing.
I must see on social media every day tenants asking for “private landlords only” – presumably because their credit is shot so they won’t secure a property through an agency, and they also know they can take liberties with the landlord.
It’s all very self fulfilling, when you think about it.
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Even if a landlord isn’t using an agent, and many on here don’t, they should do there own due diligence, just as an agent should.
I’ve just re-let my remaining rental (because I can’t sell up and exit the PRS as I want to!). My agent obtained what appeared to be a comprehensive HomeLet report on the selected prospective tenant, but it didn’t include her previous landlord. When I pointed out the potential risk in not knowing if she’d been a good tenant, my agent did her own investigation, and came up with an acceptable previous landlord reference.
I asked why HomeLet doesn’t do that and she said it was probably down to time and cost.
Perhaps someone from HomeLet can comment, because IMHO a reference without a previous landlord is critical… even more so with the looming RRA.
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A spokesperson for the Ministry of Housing, Communities and Local Government told the press:
“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.”
But is this really anything more than lip service? The government can’t crack down on rogue landlords who operate under the radar—unregistered, unknown, and unchecked. These landlords carry on as they always have, oblivious or indifferent to housing laws. I see it every day. The truth is, only responsible landlords—those who already follow the rules—are paying attention. The rest continue regardless.
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Anyone who knows Hounslow (not Chiswick!) knows there are countless examples of non-compliance which never seem to be picked up.
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While tenant protections are essential, it’s equally important to recognise the practical realities landlords face when properties are returned in poor condition. Coordinating repairs isn’t a one-size-fits-all task—decorators don’t do gardening or carpet repairs, and a French polisher won’t fix broken window handles. Each issue often requires a different specialist, and getting multiple quotes takes time, especially when aiming to present a compliant and well-documented case to a tenancy deposit scheme adjudicator.
Ironically, it’s often the tenants who return properties in substandard condition—sometimes not even matching the level of cleanliness they received—who are the first to demand an immediate deposit return. Many seem unaware of the real-world logistics involved in restoring a property. Whether it’s due to living in a convenience-driven bubble or simply not having to manage these responsibilities themselves, there’s a disconnect between expectation and reality.
A more balanced conversation would acknowledge that landlords aren’t trying to delay returns unfairly—they’re trying to do things properly, transparently, and in line with the rules.
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This will be Craw and Generation Rant’s next crusade – make deposits illegal.
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