The facts challenge misconception that landlords routinely withhold deposits unfairly

New data released by mydeposits, shared with and in part produced by the Ministry for Housing, Communities and Local Government (MHCLG) every six months across all three government-backed schemes, offer a transparent picture of how tenancy deposits are managed and returned.

The statistics show that tenants receive all or part of their deposit back in 90% of cases in the insurance-backed scheme, and in over 80% of cases within the custodial scheme. Meanwhile, landlords receive 100% of the claimed deposit less than 20% of the time, and just 7% of the time in insurance scheme disputes.

These insights challenge the misconception that landlords routinely withhold deposits unfairly. In practice, tenants typically reclaim a significant portion, if not all, of their deposit.

Recent data from July 2025, a peak period for tenancy transitions, shows that disputes within the custodial scheme are resolved in an average of 15 days, comprising 10 days for adjudication and five days for case assessment. Over the broader period from May to July 2025, the average resolution time was 21 days (13 days to adjudication, seven days for case assessment).

In the insurance scheme, resolution times are currently longer due to the different processes involved. In July 2025, the average resolution time was 55 days (41 days for case assessment and 14 days for adjudication). Across May to July 2025, the average was 59 days, with 43 days for assessment and 16 days for adjudication. mydeposits is continually reviewing and refining its approach to improve turnaround times across both schemes, with a focus on delivering fair outcomes quickly and efficiently.

There is a common assumption that tenants rarely get their deposits back

Eddie Hooker, CEO of mydeposits, said:

“There is a common assumption that tenants rarely get their deposits back, or that the system is too slow to resolve disputes. The data shows the opposite. Most tenants receive all or part of their deposit, and our custodial resolution process is delivering decisions within days. Where there is no dispute, or only a portion of the deposit is in question, we make sure the rest is returned as quickly as possible. Our focus is on fairness, efficiency and trust.”

Where only part of a deposit is in dispute, mydeposits aims to return any undisputed funds as quickly as possible under both schemes. In the custodial scheme, undisputed amounts are automatically released when the formal dispute process is triggered. In the insurance scheme, undisputed amounts are typically returned once a formal dispute has been raised and the landlord’s claimed deduction has been confirmed, prior to the case proceeding to adjudication. This approach helps tenants recover available funds early, even before the full process is complete.

Once a final decision has been made, mydeposits processes deposit returns on the same day in the custodial scheme, making it the fastest scheme in the market for post-adjudication payouts. This rapid turnaround has been enabled by continued investment in the Total Property platform, which currently powers the custodial scheme.

In the insurance scheme, post-resolution payments are currently processed in an average of three days.

mydeposits operates a free, formal alternative dispute resolution (ADR) process, designed to ensure fair and impartial outcomes, even if one party does not participate. If a tenant raises a formal dispute, the landlord must either engage or choose to pursue the matter through the courts. If the landlord fails to respond or submit evidence, the case is resolved solely on the basis of the tenant’s evidence, and funds are paid out accordingly. This guarantees tenants access to a resolution process regardless of landlord engagement.