Posts with tag: tenancy deposits

Average tenancy deposit has dropped since 2019, mydeposits finds

Published On: April 20, 2022 at 8:12 am

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Categories: Lettings News,Tenant News

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Average first-time buyer deposit has increased by more than £10,000

The average rental deposit has fallen year-on-year since the start of the pandemic and the introduction of deposit caps, mydeposits has found.

The deposit protection service’s research shows that in 2011, 2.2 million deposits were protected across England and Wales, with a total estimated value of £2.1 billion. 

Today, there are over 4.2 million deposits held via protection schemes, a 91% increase compared to a decade ago. Its research also found that the total value of deposits held increased to over £4.3 billion in 2021.

The cost of a rental deposit for an individual tenant has not seen the same growth. In 2011, the average tenant paid a tenancy deposit of £948, which has increased almost every year to a peak of £1,108 in 2019, resulting in a 17% increase. However, since 2019, this cost has declined. It decreased by 6% to £1,040 in 2020 and went down a further 1% to £1,025 in 2021.

Eddie Hooker, CEO of mydeposits, comments: “It’s abundantly clear that as a nation, we are far more reliant on the rental sector than we were just a decade ago and this is evident by the sharp increase in both the number of deposits held, as well as the total value of these deposits. 

“Much like a mortgage deposit for a house, a tenancy deposit can be a steep financial hurdle for many to overcome and this hurdle remains considerably higher than it was in 2011. 

“The good news is that it has started to fall since 2019 and the introduction of deposit caps, which have ensured that any sums charged don’t exceed the five-to-six-week thresholds set by the Government.

“Of course, the pandemic has also played a part with rental values falling in many areas, thus reducing the deposit charged based on these thresholds. However, it’s looking increasingly likely that rental market values may once again start to climb in 2022, which may well reverse the downward trend seen in the cost of a tenancy deposit.”

Self-resolution encouraged for landlords and tenants with deposit disputes

Published On: September 8, 2021 at 8:22 am

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Categories: Landlord News,Tenant News

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Self-resolution encouraged for landlords and tenants with deposit disputes

Landlords and tenants are opting to solve disputes independently, according to new figures from SafeDeposits Scotland.

This is saving them weeks of waiting and the potential stress caused by lengthy formal processes.

The Glasgow-based tenancy deposit scheme saw cases completing with a self-resolution increase by 11% between April and June. This accounts for 9% of all dispute cases in April, 17% in May, and 20% in June. Over the same period, the number of cases using the free dispute resolution service called Alternative Dispute Resolution (ADR) decreased by 10%.

Overall case numbers increased by 20%, which indicates that despite the rise in disputes during the same period, more are being resolved independently.

The scheme holds tenants’ deposits on behalf of landlords and letting agents in line with government regulations designed to ensure responsible leasing. This includes the ADR service, with an independent adjudicator using evidence submitted to reach a decision. The process can take up to 12 weeks to complete.

SafeDeposits Scotland says self-resolution is an increasingly popular alternative, where mutual agreements can be made between the two parties, often through a simple conversation. Cleaning costs, unpaid rent and property damage are among the causes for deposit deduction claims that can result in disputes between landlords and tenants. The scheme is urging more tenants and landlords to consider self-resolution where possible to help both parties reach agreements quicker.

Mike Smith, operations manager at SafeDeposits Scotland, comments: “About 40% of all disputes that were brought to us last year were solved independently once the parties understood their options.  

“One of the major benefits of self-resolution is that the disputed funds can be accessed sooner. Once an agreement is reached, funds will be released and will reach parties within five working days. This means money can be available much quicker for those needing a new deposit or landlords looking to pay for property repairs before new tenants arrive. 

“When going down the ADR route, it’s worth noting the decision is then out of your control and could take weeks or months for an answer. Our independent adjudicators can only make decisions based on the evidence provided, which varies in quality and quantity. This means those disputing a case don’t always get the outcome expected. 

“With such a challenging year for the country almost behind us, where we can support people in solving issues quickly and easily, we will. If you have a dispute but you’re not sure on which route to take, we can help advise parties before submitting a proposal to hopefully save everyone time and effort in the long-run.”

In line with Government regulations, SafeDeposits Scotland only refers dispute cases to adjudication when satisfied that the landlord (and any agent acting on their behalf) and tenant have attempted to resolve the dispute but without success.

Cleaning remains the most common cause of tenancy deposit disputes

Published On: February 11, 2021 at 9:38 am

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Cleaning remains the most common cause of tenancy deposit disputes

According to the Annual Review 2020 from The Dispute Service (TDS), cleaning is the most common reason for tenancy deposit dispute claims.

The report from TDS looked at claims from TDS Insured, TDS Custodial, TDS Northern Ireland, and SafeDeposits Scotland. The main reasons for disputes also included damage, redecoration, rent arrears, and gardening.

Cleaning resulted in 42% of TDS Insured’s claims, 53% of TDS Custodial’s, 45% of TDS Northern Ireland’s, and 69% of SafeDeposit Scotland’s.

The data in this review also reveals that the proportion of disputes raised by tenants is increasing. In the 2018-19 review, it was at 67%, whereas in this review of 2019-20 it has increased to 74%.

You can read the full review on TDS’s website.

Paul Oxley, Managing Director of lettings management software company Decorus for Sage, comments: “According to the TDS, many tenants claim that the cleanliness of the property at the start of the tenancy was not clear, or that the tenancy agreement did not make clear what was expected of them.

“So, it is vital that landlords have a proper inventory prepared and do a thorough check-in and check-out, so they have the right proof of condition at the start and end of a new tenancy agreement.

“When landlords take the time to spell out tenants’ responsibilities in terms of cleaning and caring for the property, tenants are more likely to conduct their tenancy in a way that is respectful to the property and this minimises any potential damage.

“At the check-out stage, the tenant should be made aware of the areas requiring cleaning and the potential cost involved. It is important to remember that the tenant is only obliged to return the property in the same state of cleanliness as at the start of the tenancy, after allowing for fair wear and tear. 

“Landlords should conduct thorough check-in and check-outs at the start and end of the tenancy, supported by a professional inventory. Clear communication on the tenant’s responsibilities when they move into the property will improve the chances of a trouble-free check-out.”

Cleaning remains the most common cause of tenancy deposit disputes
Cleaning remains the most common cause of tenancy deposit disputes

Decorus for Sage provides the following tips to reduce the risk of a deposit dispute:

  • Landlords make the mistake of thinking that inventories can be heavily comprised of photography and video. Completely photographic or filmed inventories without a complete written accompanying report are almost useless.
  • If photography or film has been used for recording the inventory, make sure it is detailed and dated. Include photographs of the garden, inside of the oven, the interior of the shed or garage, and keys handed over to tenants – these are the main areas of problems that occur and are often down to misinterpretation at the end of a tenancy.
  • There is no need to photograph every single corner of the property, as this is simply a waste of time – stick to the important things. Films and photographs alone will be of little use in a dispute when an adjudicator is trying to find hard evidence of a particular area.
  • Carry out a thorough and full check-in and check-out of the property at which the tenant was present. Landlords and agents who don’t have this available when they go to court have little chance of winning the case.
  • Document correspondence with the tenant and keep receipts for the deductions on the deposit e.g. cleaning and repairs.


Paul Oxley continues: “The common mistakes in landlord inventories are essentially lack of detail. Landlords often write just a brief shopping list and often do not have the appropriate photographs and videos, along with accompanying written descriptions to show the condition of the property and its contents. 

“If the landlord finds the tenant fails to agree to the deposit deductions, they need to ensure they have the evidence such as a thorough and fully detailed inventory, copies of which are given to the tenant at check-in and check-out. It is imperative that tenants sign their acceptance of the contents of the check-in within seven days of the move in, and this signed copy should be retained by either the landlord.

“When landlords are managing multiple properties, it’s easy for documentation to go astray. Software developed specifically for the property industry uses advanced storage methods to combat this common issue. Decorus for Sage, for example, backs up system information on Microsoft Azure. If inventory information is lost or accidentally deleted, it can be easily restored. The software also runs on cloud servers so logged information can be accessed from any device with an internet connection.”

Over £180,000 of tenancy deposits left unclaimed by tenants in Scotland

Published On: January 25, 2021 at 9:07 am

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Categories: Tenant News

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Edinburgh’s first Green Home Festival to demonstrate how Scotland can build a more sustainable future

SafeDeposits Scotland has revealed that tenants in the west of Scotland could be due a share of £188,851, after failing to claim back deposits at the end of their tenancies.

The Glasgow-based organisation is a government-approved tenancy deposit scheme that holds deposits on behalf of landlords and agents. When a tenancy ends and all parties agree to repayment, the scheme then releases the funds back to the tenant. 

SafeDeposits reports that currently, the G postcode alone has 572 unclaimed deposits with a combined value of £153,458, with one individual claim worth £1,950. In total across Scotland, there are around 2,513 unclaimed deposits, amounting to £690,383. 

One Greenock resident, Gary Crawford, was recently contacted by SafeDeposits Scotland about his unclaimed deposit after he left his property in October.  

Gary said: “There was a bit of a mix-up when I left the property I was renting. I didn’t realise it was a rolling contract and due to the notice I gave, I was led to believe I wouldn’t get my deposit back. It was one of those things where I just assumed that was that, and I put it out of my mind. 

“A week or so before Christmas I got a call out of the blue from SafeDeposits Scotland where I was told I’d be getting my full deposit back. It was such a pleasant surprise, especially just in time to spend over the festive period. It was really simple once they had got in touch. I shared my bank details and the money was in my account within the week. Going forward, I will always make sure to check what I am due and I’d urge others to seek advice if they’re not 100% sure.”

In 2020, SafeDeposits Scotland tracked down 1,246 tenants across the country that had forgotten to claim their deposits back. They managed to return £470,320 from the scheme to these tenants. 

The organisation also looked into the quantity of deposits it holds for longer-standing tenancies. The average tenure length for tenancies with deposits protected by SafeDeposits Scotland is just over 2.5 years. However, the scheme found over 4,500 active deposit accounts for tenancies of 10 years or more. 

There are 1,275 long-standing tenancies in the G, PA, KA, and ML postcode areas, with tenancies in both Glasgow and Greenock starting in 1988. While many of these tenancies will still be active, there may be some cases where a tenancy has ended and none of the parties have ever instigated the repayment process.

Mike Smith, operations manager at SafeDeposits Scotland, comments: “Our priority is to make sure tenants’ deposits are safe for the duration of their tenancy, and that both landlords and tenants have access to our dispute resolution service should there be any disagreement over the deposit once the tenancy ends. 

“Glasgow is home to 56,000 private rented properties and it’s predicted that this number will grow to 70,000 by 2028, influenced by factors such as recent high-profile financial services investments seen across the city that will lead to an increase in people looking to rent ahead of starting new employment. But it’s part of our job to make sure that people, including those moving into new houses, remember to claim their deposits back from previous tenancies.

“We’ve found that hundreds of people have left their Glasgow homes without claiming back their deposit, some of which are worth hundreds of pounds. These are instances where a landlord has instructed for the deposit to be repaid to the tenant, but the tenant hasn’t completed the process to receive their funds. We’ve also discovered that there are hundreds of older tenancies, some of which may be no longer active and with deposits to be repaid.

“Moving home can be a busy time but there’s no reason why a tenant shouldn’t claim their deposit back when they leave.”

New tenancies fall by almost a third during lockdown, according to mydeposits data

Published On: October 23, 2020 at 9:36 am

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Categories: Lettings News

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Average first-time buyer deposit has increased by more than £10,000

Deposit replacement service Ome has looked at the impact of the temporary restriction on moving homes that occurred earlier in the year. 

It looked at data from mydeposits, the government-approved deposit protection scheme, during March, April and May 2020. This data revealed that during this three-month period there was a 31% decrease in new tenancies compared to the same period last year. The total dropped from 81,055 new tenancy deposits protected in 2019 to 61,972 in 2020.

Ome points out that restrictions on ‘non-essential’ travel and advice to work from home was provided by the Government from 16th March. On 23rd March Prime Minister Boris Johnson instructed the public to stay at home and closed many businesses. Then on 26th March, the Government published The Health Protection (Coronavirus, Restrictions) (England) Regulations 2020. These emergency regulations stated that: ‘During the emergency period, no person may leave the place where they are living without reasonable excuse.’

Rules on moving to a new house in England were relaxed on 18th May 2020, requiring suitable safety measures to be taken.

Matthew Hooker, Co-Founder of Ome, comments: “As we head into what looks like a second wave of the COVID-19 pandemic it is important to reflect and learn from the initial spring period.

“As the initial impact of coronavirus restrictions hit us the entire nation was having to react quickly to a number of unprecedented changes, and the evidence shows the rental sector was not immune. We now know far more about the virus and its wider impact on society and the economy than we did at first, however there is still likely to be a significant period of uncertainty and flexibility required for landlords, agents and their tenants.

“We’d therefore urge tenants and landlords to start making contingency plans together for the winter just in case the virus rears its head again over the festive period.”

Over £600,000 in tenancy deposits unclaimed in Scotland

Published On: September 24, 2020 at 10:45 am

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Categories: Tenant News

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tenancy deposits unclaimed

Tenants across Scotland could be due a share of £697,554, after failing to claim back deposits at the end of their tenancies.   

This information comes from SafeDeposits Scotland, the Glasgow-based tenancy deposit scheme. It holds deposits on behalf of landlords and agents in line with government regulations.

Renters are supposed to claim their deposit bac at the end of a tenancy, but it seems many are forgetting. In 2019, SafeDeposits Scotland tracked down 2,750 tenants to return £912,418 from the scheme to those who should have already claimed it.

Currently across Scotland, there are 2,418 unclaimed deposits, amounting to £697,554. Edinburgh and Glasgow postcodes have the highest value of unclaimed deposits, with a combined total of £374,081.

The Aberdeen area alone has 282 unclaimed deposits worth £83,095 while 256 tenants in and around Dundee could claim back a share of £58,450.

Over 4,500 active deposit accounts have been found for tenancies lasting 10 years or more. One of these tenancies, located in Peebles, started in 1976. While many of these tenancies will still be active, there may be some cases where a tenancy has ended and none of the parties have ever instigated the repayment process.

Mike Smith, operations manager at SafeDeposits Scotland, said: “Our priority is to make sure tenants’ deposits are safe for the duration of their tenancy, and that both landlords and tenants have access to our dispute resolution service should there be any disagreement over the deposit once the tenancy ends. 

“When a tenancy ends, most tenants claim their money back promptly. However, we’ve found that thousands of people across Scotland have left their homes without claiming back their deposit, some of which are worth thousands of pounds. 

“These are instances where landlords have instructed for the deposit to be repaid, but the tenant hasn’t completed the process to receive their funds. We’ve also discovered that there are thousands of older tenancies, some of which may be no longer active and with deposits to be repaid. 

“There are lots of things to think about when moving to a new house or flat but there’s no reason why a tenant shouldn’t claim their deposit back when they leave.”

If tenants in Scotland think they have left a deposit with SafeDeposits Scotland unclaimed from a previous tenancy, they should enquire with the scheme on 03333 213 136.