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The Reality of Tenancy Deposits: What the Data Shows
Thinking about your next move or preparing to let out a property? One of the most common questions for both contract holders and landlords revolves around the security deposit. The process can sometimes feel complicated, but new data from mydeposits, a government-authorised tenancy deposit protection scheme, sheds light on what really happens at the end of a tenancy.
Contrary to popular belief, most contract holders in England and Wales get their deposits back. The statistics, which are compiled by mydeposits and the Ministry for Housing, Communities and Local Government, reveal that contract holders receive all or part of their deposit in over 80-90% of cases, depending on the scheme.
The data challenges the myth that landlords routinely withhold deposits without cause. In fact, landlords receive 100% of the claimed deposit less than 20% of the time, and only 7% of the time in insurance scheme disputes. These findings suggest that the system is designed to be fair and that contract holders typically reclaim a significant portion, if not all, of their deposit.
Efficiency is also a key factor. In July 2025, the average resolution time for disputes within the custodial scheme was just 15 days. For cases with no dispute, any undisputed funds are returned as quickly as possible, ensuring that contract holders aren't left waiting.
A Fair and Efficient Process for Everyone
These findings provide reassurance for both contract holders and landlords using a government-approved scheme. For contract holders, it confirms that the system is overwhelmingly on their side, with a clear path to getting their money back. For landlords, it highlights the importance of using a secure, efficient scheme to manage deposits transparently and resolve any issues fairly.
At FlatHomes, we believe in a clear and trustworthy rental process. Understanding how tenancy deposit protection schemes work is crucial for a smooth and successful tenancy, from start to finish.
