Tenancy disputes already rising by 6% a year

The latest research industry insight from LegalforLandlords reveals that the number of tenancy disputes in England & Wales is increasing at an average rate of 6% annually, with one in five professionals incurring costs of more than £5,000 per dispute.

The Renters’ Rights Act (RRA), which comes into effect from 1st May 2026, will introduce sweeping reforms across the rental industry. The legislation is designed largely to protect tenants, giving them greater power and security in their homes. However, as tenants gain additional protections, the number of tenancy disputes is expected to rise when the new rules are introduced.

This could prove significant, as LegalforLandlords’ analysis of data from the Tenancy Deposit Scheme (TDS) reveals that the number of annual disputes in England & Wales has been rising steadily, at an average rate of 6% per year over the past decade.

In fact, the pace of growth has accelerated sharply in recent years. In 2023, disputes increased by 17.1%, followed by a 15.4% rise in 2024 and a further 11.1% increase in 2025, when the total number of disputes reached an estimated 46,950.

While this represents just 1% of the nation’s total number of deposits under protection, which currently stands at just over 4.7m, a new survey of more than 1,000 UK letting agents conducted by LegalforLandlords* suggests that the likelihood of landlords experiencing disputes may be far greater.

According to the survey, 35% of respondents have experienced a tenancy dispute, and 16% have dealt with multiple disputes.

Among those who have faced disputes, the most common cause is rent arrears (21%), followed by property damage (16%) and end-of-tenancy property condition (16%). A further 14% report having dealt with disputes relating to anti-social tenant behaviour.

The duration of disputes also presents a challenge. While 32% of respondents say disputes typically last between one and three months, 40% report disputes lasting more than three months, and over a quarter (26%) say they extend beyond six months.

Court action is the most common route to resolution, cited by 20% of respondents. This is followed by tenants leaving the property before the dispute is resolved (19%), and intervention by a deposit scheme (18%).

Tenancy disputes can also be costly. Over a third of professionals (36%) say disputes typically cost them between £1,000 and £5,000. However, one in five (21%) report costs of above £5,000, while one in ten (9%) say disputes have cost them more than £10,000.

Reflecting these experiences, almost half of the survey respondents (47%) believe tenancy disputes are becoming increasingly common, while only 15% believe they are becoming less frequent.

Sim Sekhon, Group CEO at Legalforlandlords, said: “Tenancy disputes are rarely straightforward and they can quickly become both time-consuming and expensive for landlords. As our research shows, even a single dispute can run into thousands of pounds, while the time involved in resolving issues can stretch into months and create significant uncertainty for property owners.

With the Renters’ Rights Act set to reshape the private rental sector from May, it’s likely we will see disputes become more common. Tenants will understandably feel more confident and empowered by the additional protections available to them, which could mean that disagreements that may once have been resolved informally are increasingly escalated through formal channels.

For landlords and letting agents, this makes preparation and professional support more important than ever. Having clear processes in place, robust tenancy agreements, and access to experienced legal guidance can make a significant difference when issues arise. By taking a proactive approach and ensuring they have the right expertise on their side, landlords can navigate disputes far more effectively while protecting both their investment and their peace of mind.”