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14/7/25 8:13 pm
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A new poll has revealed a decline in deposit protection compliance, significant inconsistencies in landlord behaviour, and a troubling lack of awareness among tenants about their legal rights.
Tenant review platform Marks Out Of Tenancy analysed 2,299 verified tenant reviews submitted between 2019 and 2024 and found that nearly one-third of tenants (31%) were either unsure or said their deposits had not been protected by an approved government scheme.
Deposit protection rates peaked during the pandemic years of 2020 and 2021, when compliance rose above 80%, which likely reflected increased public scrutiny and wider access to legal information during lockdowns, alongside professionalisation efforts among letting agents, says the firm. In 2024, the proportion of tenants reporting their deposits were protected dropped dramatically to just 38% - a stark contrast that suggests growing issues with enforcement or a decline in good practice among landlords.
“These trends highlight a persistent lack of awareness among tenants and inconsistent landlord behaviour,” says founder Ben Yarrow. “The law is clear: deposits must be protected. Stronger education and more consistent enforcement are essential if we want to fix this.”
Eddie Hooker, CEO of mydeposits (pictured), believes more work by deposit schemes and the sector is needed to bring this subject back to the forefront, particularly as deposit values have steadily increased over the past three years.
“At the same time, dispute notifications to schemes have risen by around 15%, despite the number of protected deposits broadly flattening,” he tells LandlordZONE. “This suggests that tenants whose deposits are protected are becoming more aware of their rights and increasingly confident in challenging deductions.
“By law, deposits must be protected in an approved scheme within 30 days and tenants must be given the prescribed information, with landlords who fail to comply facing court penalties of up to three times the deposit and restrictions on regaining possession. That is why more work across the sector is needed to keep deposit protection front of mind for both landlords and tenants.”
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