According to the Tenancy Deposit Scheme, it has been a successful year (2007-08) with nearly half a billion pounds in deposits covered and 2,000 disputes resolved.

Initially registration of tenancies covered by the scheme was more gradual than expected. Registrations came into the system as new tenancies came on stream after April 2007 when tenancy deposit protection became mandatory. During the first year, the dispute rate was 1.76% of the total number of registrations, which is less than predicted. All cases were closed within an average time of 28 days, from receiving the consent of both parties to adjudication, as demanded by the Government. Although the number of cases handled was low, the percentage suggests that there will be as many as 6,000 disputes during the year 2008-09.

Although during the current year, 2008-09, over £700m of deposits have been safeguarded, which is an increase of +50% on the previous year, and the volume of dispute has risen to 750 a month and is still climbing.

John Hornsey, chairman of The Dispute Service, said: “There is still widespread ignorance and non-compliance with Tenancy Deposit Protection. Along with the professional bodies and the other protection schemes, we are doing what we can to address the issue. Hopefully, by the time of our next annual report, there will be an even greater degree of compliance with the legislation.”