The figure is staggering. Nearly 9 years after the introduction of legislation requiring tenancy deposits to be protected, the research shows that 15% of landlords are not complying. Notes to the research add that this figure is likely to be an underestimation.
The story may not quite be so simple either. I have encountered a number of letting agents who have not been complying with the requirements These agents have received deposits from tenants and then failed to correctly deal with them. This is without the knowledge of the landlord who has instructed the agent, yet it is the landlord who is likely to face the claim from the tenants for the deposit penalty.
One in seven UK landlords are still not complying with deposit protection rules, leaving renters without third party protection and vulnerable to unfair losses when they move out, research has shown. According to a survey carried out by Centre for Economics and Business Research (CEBR) on behalf of comparison website money.co.uk, 284,000 of Britain's 1.9m landlords were not complying with deposit protection rules, leaving £514m worth of deposits unprotected.