"A proper inventory – one that accurately and fastidiously records all existing damage at the start of a tenancy – provides landlords with ultimate protection when it comes to tenants who use the disputes process to try and avoid paying for any damage they have caused"
- Siân Hemming-Metcalfe - Inventory Base
The latest market analysis from Inventory Base looked at historic data from the TDS over the past decade, the number of tenancy disputes that occur in the UK rental sector each year, and how this has changed.
The data reveals that tenancy disputes are on the rise and have been increasing consistently with the exception of the pandemic period.
Ten years ago, the UK saw an estimated total of 27,035 disputes per year. In 2023, this annual total had increased to 42,180 - a jump of 56%.
Over the past decade, there have only been two years in which the number of tenancy disputes has fallen.
2021 and 2022 recorded drops of -5.3% and -13.6% respectively, but it’s important to note that tenants were benefiting from protection measures, including eviction bans, that were introduced during the COVID-19 pandemic.
And once these protections were removed, 2023 saw an enormous increase of +20.5% in a single year in the number of disputes recorded.
What’s more, the TDS expects that the number of tenant disputes seen across the rental market is expected to increase further by the end of 2025.
It’s estimated that by the end of this year alone, tenant disputes will reach a total of 42,542 which will mark an annual increase of +0.9%.
It’s also expected that this will be followed by a further increase of +3.5% in 2025 pushing the number of annual disputes to a total of 44,040 - the highest yearly total seen since 2014.
Siân Hemming-Metcalfe Operations Director at Inventory Base, comments: “The number of disputes we’re seeing, and the rate at which they’re increasing, goes to show just how important it is for landlords and letting agents to implement flawless practices in deposit protection and inventories.
"A proper inventory – one that accurately and fastidiously records all existing damage at the start of a tenancy – provides landlords with ultimate protection when it comes to tenants who use the disputes process to try and avoid paying for any damage they have caused.
"Far too often, lacklustre inventories mean that landlords end up paying for damage caused by the tenant, simply because they cannot prove what the condition was before the tenant moved in.
"It’s forecast that disputes are set to rise and the likelihood is that the proposed Renters’ Rights Bill will only lead to a higher number of disputes as both tenant and landlord adjust to the new laws put into place.
"What’s more, the Government is seemingly intent on pushing through a ban on Section 21 evictions before a reform of the county system has been completed. The courts are already struggling with the sheer volume of cases at present and so for those disputes that do require court proceedings in order to be resolved, the time taken to do so is likely to increase considerably.”
