Although 99.4% of tenants’ deposits are returned by landlords without any problems, those which go on to be disputed are increasingly being found in favour of landlords, according to Mydeposits.

In the year to March 2010, landlords have been awarded part or all of disputed amounts in 51% of cases, with 41% being split with the tenant and just 8% awarded in full to the landlord. This compares to the previous year where 42% of cases were found in favour of the landlord with them receiving part or all of disputed amount, 36% split with the tenant and 7% awarded in full to the landlord.

Eddie Hooker, chief executive of Mydeposits, said: “The more equitable balance between tenant and landlord has come about because landlords have improved the quality of the evidence they are providing to substantiate claims.

“The law starts with the principle that the money is the tenant’s. It’s up to the landlord to justify withholding all or part of a deposit.”

Since tenancy deposit protection became law in April 2007 the scheme has received about 19,000 calls from tenants about possible complaints, with around 11,000 being settled amicably between landlord and tenant without the need for referral of a dispute to formal adjudication.