Date Published 26 September 2025
A new report from tenant review platform Marks Out of Tenancy has revealed what it calls 'worrying trends in deposit protection compliance across the UK rental sector.' Drawing on 2,299 verified tenant reviews submitted between 2019 and 2024, the research highlights declining compliance, inconsistent landlord and agent behaviour, and limited tenant awareness of their legal rights.
Key findings include:
• 69% of tenants confirmed their deposits were protected by a government-approved scheme.
• 31% were either unsure or said their deposits were not protected.
• Compliance rates peaked during 2020–21, surpassing 80% during the pandemic, when greater public scrutiny and easier access to legal information encouraged better practice.
• By contrast, in 2024 protection rates dropped sharply to just 38%.
The data also revealed regional contrasts. Nottingham reported the highest compliance (89.3%), followed by Fife (85.6%) and Bath & North East Somerset (80%). However, in Tower Hamlets, only 80.9% of tenants said their deposits were safeguarded — lower than expected for such a major London rental hub. 'These trends highlight a persistent lack of awareness among tenants and inconsistent landlord behaviour,' said Ben Yarrow of Marks Out of Tenancy. 'The law is clear: deposits must be protected. Yet our data shows tenants are too often left in the dark. Stronger education and more consistent enforcement are essential if we want to fix this.'
Furthermore, the platform is urging tenants to check directly with one of the official tenancy deposit schemes to confirm whether their deposit is protected. Meanwhile, landlords are advised to review their practices urgently — poor compliance not only risks legal penalties but also damages trust and long-term tenant relationships.
Landlords are legally required to protect tenants' deposits in one of the three government-approved tenancy deposit schemes (TDS, DPS, or MyDeposits) within 30 days of receiving it. Failure to comply can result in serious financial and legal penalties, including:
• Financial Penalties - Repayment of the deposit in full to the tenant, compensation of 1–3 times the deposit amount (decided by the court), payable to the tenant.
• Restrictions on Eviction – A landlord who has not protected the deposit cannot serve a valid notice to evict a tenant until the deposit issue is resolved.
• Damage to Reputation & Relationships - Non-compliance damages trust with tenants.
With new measures such as the forthcoming Renters' Rights Bill, landlords are reminded of their legal duties. Failure to protect a tenant's deposit can result in serious financial and legal consequences. At Adams Estates, we ensure complete peace of mind: every security deposit is safeguarded with one of the three government-approved schemes as part of our fully managed service — guaranteeing compliance, transparency, and protection for both landlords and tenants.
