An industry legal company reports that formal tenancy disputes in England and Wales are climbing by around 6% a year on average, with many cases now costing landlords more than £5,000 to resolve.
The firm says the pace of escalation has quickened markedly: disputes jumped 17.1% in 2023, rose a further 15.4% in 2024, and increased another 11.1% in 2025, taking the estimated total to 46,950 cases.
Although this still represents only around 1% of the 4.7 million deposits currently protected nationwide, the firm’s latest survey of property professionals suggests the issue is far more widespread in day-to-day practice.
Over a third (35%) of respondents say they have dealt with a tenancy dispute, and 16% report handling multiple cases.
Among those who have encountered disputes, rent arrears emerge as the leading trigger, cited by 21% of respondents. Issues around property damage and end-of-tenancy condition follow closely at 16% each, while 14% report disputes linked to anti-social behaviour.
The length of disputes is becoming a significant pressure point.
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32% say cases typically run for one to three months.
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40% report disputes lasting beyond three months.
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26% say they can drag on for more than six months.
When it comes to resolving cases, court action remains the most used by 20% of respondents. Other outcomes include tenants leaving before resolution (19%) and intervention by a deposit scheme (18%).
The financial impact is also mounting.
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36% of professionals say disputes usually cost £1,000–£5,000.
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21% face bills above £5,000.
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9% report disputes costing more than £10,000.
A separate study from The Property Ombudsman (TPO) points to a sharp rise in complaints about letting agents, with the organisation making clear that the approaching Renters’ Rights Act is a major driver of the surge.
Between November 2025 and February 2026, it has recorded a 58% increase in complaints compared with the same four-month period a year earlier. The Ombudsman attributes the jump to greater public awareness of tenant rights, which is prompting more renters to challenge poor practice.
In its newly published 2025 annual report, TPO says it has overhauled how it handles enquiries and disputes.
Key changes include earlier professional assessment at triage, clearer evidence-gathering processes, and stronger quality assurance throughout case handling. These reforms enabled the organisation to resolve 54% more cases in 2025 than in 2024, helping to cut waiting times and reduce backlogs.