ARLA - Tenancy Deposit Disputes are Rare in Regulated Lettings
Disputes over the allocation of deposits against damage and dilapidations for rental properties are rare, the latest ARLA quarterly survey shows. Only just over one percent of all tenancies arranged through letting agents who are members of the Association of Residential Letting Agents end with a protracted or unresolved dispute between tenants and their landlords.
The figures for deposit disputes drawn from the ARLA survey issued on Monday 17th March, show that disputes over deposit reductions arose in the case of 6.7% of all tenancies. With the exception of just 1.2% of this total, these disputes are resolved to the satisfaction of both parties.
During the three months to March, the highest number of disputes arose in Prime Central London properties where 1.6% of terminating tenancies ended with a protracted dispute. This figure for the most expensive rental area in the country compares with averages of 1.2% in the rest of the South east and only 1% throughout the rest of the UK.
The ARLA survey, the largest of its kind in the Private Rented Sector, showed that, on average, each ARLA member's office holds deposits against damage and dilapidations on 170 properties. The average value of these deposits is £1,228.
Broken down, the average value of deposits ranges from £2,335 for properties in Prime Central London and £1,104 in the Rest of the South East to an average of £591 throughout the rest of the country.
Commented Adrian Turner, Chief Executive of ARLA, "This survey is very comprehensive and it demonstrates that disputes over tenants' deposits are rare in the regulated sector of the lettings market. This is contrary to the popular opinions sometimes expressed and underlines yet again the benefits of using properly regulated letting agents."