The number of rental deposit disputes lodged with Hamilton Fraser’s government-authorised deposit scheme, mydeposits, has fallen by 15% across England so far this year.

Analysis of the data by Hamilton Fraser’s sister company and deposit replacement provider, Ome, found that London, the South-East and the North-East have all seen the largest drop in deposit disputes (-23%) so far in 2020, in comparison to the same time last year.

Ome revealed that deposit disputes are also down in the West Midlands (-16%), Yorkshire and the Humber (-11%), East of England (-8%) and the North-West (-2%).

The analysis showed that only the East Midlands (11%) and the South-West (18%) are the regions to see an increase in deposit disputes when compared to the same time frame last year.

Ome added that the main reason for withholding a deposit has been for “post-tenancy cleaning”, which accounts for 26% of all deposit disputes. Damage to the property and the deposit not being returned in the first place are also some of the most common reasons that deposits were withheld (20%).

Ome co-founder, Matthew Hooker, suggested that lockdown restrictions have prevented many renters from ending their tenancy, and that this will have contributed to the reduction in deposit disputes seen so far this year.

“However, the majority of disputes already lodged will relate to tenancies that ended prior to lockdown and so it’s encouraging to see a drop none the less,” Hooker added.

“It will be interesting to see how this plays out during the rest of the year and if there is a spike in deposit disputes further down the line once lockdown has ended.

“Unlike the backlog of evictions that have amassed due to new government legislation, deposit disputes haven’t been put on hold as a result of the current pandemic as they can still be processed online. Therefore there is a good chance this positive trend is here to stay and we still continue to see a more harmonious relationship between landlords and tenants for the months and years to come.”

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