A new report from tenant review platform Marks Out Of Tenancy exposes what it calls “worrying trends in deposit protection compliance across the UK rental sector.”
Analysing 2,299 verified tenant reviews submitted between 2019 and 2024, the research claims to show significant inconsistencies in landlord and agent behaviour, a decline in compliance, and a lack of awareness among tenants regarding their legal rights.
The data reveals that 69% of tenants confirmed their deposits were protected by an approved government scheme. The remaining 31% were either unsure or stated their deposits had not been protected.
Deposit protection rates peaked during the pandemic years of 2020 and 2021, when compliance rose above 80%.
This platform says this surge likely reflected increased public scrutiny and wider access to legal information during lockdowns, alongside increased efforts by letting agents.
However, the trend has since reversed. In 2024, the proportion of tenants reporting their deposits were protected dropped dramatically to just 38%.
Geographically, the data also shows stark contrasts in compliance. Nottingham emerged as the most compliant area, with 89.3% of tenants confirming their deposits were protected. Fife followed closely at 85.6%, and Bath & North East Somerset reported an 80% compliance rate. In contrast, areas such as Tower Hamlets showed relatively lower confidence among renters, with just 80.9% reporting their deposits were safeguarded – a figure below expectations for one of London’s key rental boroughs.
“These trends highlight a persistent lack of awareness among tenants and inconsistent landlord behaviour” says Ben Yarrow from Marks Out Of Tenancy. “The law is clear: deposits must be protected. Yet our data shows that tenants are too often left in the dark. Stronger education and more consistent enforcement are essential if we want to fix this.”
The platform is urging tenants to actively verify their deposit’s protection status via the relevant tenancy deposit schemes. Landlords and letting agents are encouraged to review their practices in light of the data – poor compliance not only risks legal penalties but also damages trust and long-term relationships with tenants.
This article is taken from Landlord Today