New analysis suggests that an estimated £750 million in dormant or unclaimed tenancy deposits may be held within the deposit protection system in England and Wales. The Letting Partnership, which conducted the analysis, has raised concerns that current reforms to tenancy deposit protection have not adequately addressed these funds.
Unlike other financial systems, England and Wales lack a formal framework for dormant tenancy deposits. The Letting Partnership's estimate is based on publicly available housing and tenancy deposit data, though no official consolidated figures exist for unclaimed deposits.
The company clarified that its estimate does not imply wrongdoing by letting agents or tenancy deposit schemes. Instead, it highlights a gap in current legislation, which does not define when a deposit becomes dormant or how genuinely unclaimed money should be treated.
Scotland operates a different system where dormant tenancy deposits can be used to support housing-related causes after specific safeguards and timeframes are met. The Letting Partnership advocates for policymakers in England and Wales to consider a similar framework to provide greater clarity for all parties involved.