One of the three government appointed deposit protection services in England, states that more than 40% of current deposits it holds, are higher than the new regulated cap.

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On June 1st the agent's fees ban and the new assured shorthold tenancy deposits cap was implemented, which means for rented properties in England where the average annual rent is lower than £50,000, a tenant's deposit should be the equivalent to five weeks rent. Tenant's deposits limit for properties where the annual rent exceeds £50,000, should be no more than the equivalent of six weeks rent.

Landlords who have previously lodged deposits before June 1st which are higher than the new cap, only need to change change the amount of deposit taken when renewing a tenancy on a fixed-term basis, or starting a new one.

The service states that 42.8% of the deposits it currently holds are higher than the cap.

Managing director of the service Matt Trevett says: “Our figures show that the tenancy deposit cap will eventually affect a significant proportion of properties around the country. Landlords and letting agents should be ready to make the change whenever a relevant tenancy ends in order to fully comply with the law.”

From June 1st the percentage of despots protecting tenant's deposits were higher than the newly regulated cap and only fell by 1.46%.