Analysis from The Letting Partnership reviewed tenancy deposit protection data across England, including estimated annual volumes and the split between deposits registered by letting agents and individual landlords.

It found that letting agents account for around 69.5% of all protected tenancy deposits, equivalent to an estimated 2.98 million deposits in 2025. This represents an average annual increase of around 3% since 2021.

The data suggests that responsibility for deposit handling has increasingly shifted towards agents in recent years, alongside changes in the regulatory environment affecting tenancy processes.

Under reforms introduced from 1 May 2026, agents will no longer be able to collect rent before a tenancy agreement has been signed by all parties. However, tenancy deposits may still be taken prior to completion of the agreement.

This creates a scenario where deposits may be received before a tenancy has formally started. Under existing rules, the 30-day deadline for deposit protection begins when the deposit is received, not when the tenancy begins.

The Letting Partnership warns that where internal systems or software trigger deposit registration from tenancy start or activation dates rather than receipt of funds, there is a risk that the statutory deadline could be missed.

The risk is considered more likely where there are delays between deposit payment, contract completion and move-in dates, which may occur more frequently under the revised process.

With agents now responsible for the majority of deposit registrations, the analysis highlights the need for firms to review operational workflows to ensure compliance with deposit protection requirements.