A survey of private rental sector tenants shows a conspicuous lack of knowledge about deposit disputes.

The study – involving 860 tenants from across England and Wales, in addition to well over 700 landlords – found that 38.2% of tenants say they are not aware that they have the right to formally challenge deductions through a government-backed scheme. 

A further 25% have partial awareness but not the full details. 

Landlord awareness is higher but still incomplete: 21.8% did not know tenants had this right, and 31.5% have only partial knowledge of the process. 

In practice, disputes are far less common than landlords and tenants might fear: the Tenancy Deposit Scheme says just 1% of all protected deposits required formal adjudication in the twelve months to March 2025, with cleaning the most common source of dispute at 54% of cases. 

The process exists as a backstop, and it is used rarely.

The study was conducted by lettings agency LRG and a spokesperson says:  “Tenants often do not know they can challenge deductions or that alternatives to a full cash deposit exist. 

“That is a gap agents are well placed to close. 

“Clear communication at the start and end of every tenancy – about rights, responsibilities and the options available, could resolve a significant number of concerns before they ever become disputes.”