Long Delays in Getting Deposits Back

Nearly one-fifth (18%) of private tenants have waited over three months to receive their deposit back, according to a survey by Nationwide. The research also found that the average waiting time is almost two months, with 4% of tenants experiencing a delay of over six months. According to a leading deposit protection scheme, this is simply not good enough—the money should be returned within 10 days of the tenant requesting it after moving out.

Why Are Deposits Withheld?

The survey of more than 2,000 private tenants found that 35% had lost some or all of their deposit at the end of their tenancy. The most common reason? Cleaning costs. Younger tenants, particularly 18 to 24-year-olds, were found to be more likely to have money deducted for cleaning expenses. However, deductions can also occur due to property damage, unpaid rent, or missing items.

The Problem with Deposit Delays

Delays in returning deposits can create significant financial stress for tenants, especially those who need the money to secure their next rental property. Without their deposit, tenants often struggle to pay for their next deposit, first month’s rent, or moving expenses. This can leave them in a difficult position, particularly in cities where the cost of renting is high.

Proud Moment for Ringley

At Ringley, we take pride in building strong relationships with both landlords and tenants. We ensure that all our landlords treat tenants fairly and return deposits within a reasonable timeframe. While sometimes there are valid reasons for withholding part of a deposit, tenants should always receive a clear explanation. If you feel that your deposit is being unfairly withheld, please contact us—we are here to help.

Potential Solutions for Tenants

Paul Wootton, Nationwide’s director of specialist lending, has suggested several solutions to make deposit returns easier for tenants. These include:

• Transferring deposits from one tenancy to the next to avoid long waiting periods.
• Providing short-term loans for tenants who are waiting for their deposit.
• Offering a deposit guarantee instead of a lump sum, reducing the financial burden on tenants.

Addressing Long Delays in Deposit Returns

Long delays in returning rental deposits can cause considerable financial strain for tenants, often delaying their ability to move into new properties. With many tenants facing waiting periods of several months, a clear and efficient process for returning deposits is essential. Solutions such as deposit transfers, short-term loans, or deposit guarantees could ease the burden for tenants, ensuring they are not left financially vulnerable while waiting for their funds to be returned. Transparency and fairness from landlords and property management teams can help resolve these issues effectively.