A new study by a tenant review platform Marks Out Of Tenancy has highlighted what it describes as “worrying trends” in how rental deposits are handled across the UK. The findings suggest that compliance with deposit protection rules remains uneven, with many tenants unaware of their legal entitlements.

The report draws on 2,299 verified tenant reviews submitted between 2019 and 2024. It points to a decline in adherence among landlords and letting agents, alongside growing confusion among renters about their rights under tenancy law.

According to the data, 69% of tenants said their deposits were protected by an approved government scheme. However, nearly a third—31%—were either uncertain or reported that their deposits had not been safeguarded, raising concerns about enforcement and transparency in the sector.

Drawing on 2,299 verified tenant reviews spanning five years, the report highlights a troubling dip in compliance among landlords and letting agents. It also reveals widespread uncertainty among renters about their legal protections, particularly around deposit security.

The findings show that while 69% of tenants confirmed their deposits were protected under a government-approved scheme, the remaining 31% were either unsure or said their deposits hadn’t been safeguarded. 

This gap raises serious questions about enforcement, accountability, and the visibility of renters’ rights within the sector.

Regional differences in deposit protection are striking, according to the data. Nottingham leads the way, with 89.3% of tenants confirming their deposits were secured under a government-approved scheme. Fife follows at 85.6%, while Bath & North East Somerset reports a solid 80% compliance rate.

By contrast, confidence among renters in Tower Hamlets was notably lower. Just 80.9% said their deposits were protected—an unexpectedly modest figure for a major London rental hub, raising questions about consistency in enforcement across boroughs.

Ben Yarrow from tenant review platform, said: “These trends highlight a persistent lack of awareness among tenants and inconsistent landlord behaviour” 

“The law is clear: deposits must be protected. Yet our data shows that tenants are too often left in the dark. Stronger education and more consistent enforcement are essential if we want to fix this.”

Marks Out Of Tenancy is calling on renters to take proactive steps in checking whether their deposits are properly secured through one of the government-backed tenancy deposit schemes. It also urges landlords and letting agents to reassess their procedures in response to the findings. Failure to comply not only exposes them to potential legal consequences but also undermines tenant confidence and weakens long-term professional relationships.