"With the Renters' Rights Act set to reshape the private rental sector from May, it's likely we will see disputes become more common"
- Sim Sekhon - LegalforLandlords
Tenancy disputes in England and Wales are rising at an average rate of 6% a year, and one in five letting professionals has faced costs exceeding £5,000 per dispute, according to new research from legal services firm LegalforLandlords. The findings land as the sector braces for further pressure from the Renters' Rights Act (RRA), which comes into force on 1 May 2026.
The RRA will introduce significant reforms designed to strengthen tenant protections, including greater security of tenure and expanded rights. While the legislation aims to create a fairer private rental sector, the shift in power is widely expected to push more disagreements into formal dispute channels.
Dispute volumes already accelerating
LegalforLandlords' analysis of data from the Tenancy Deposit Scheme (TDS) shows the upward trend in tenancy disputes has gathered momentum in recent years. Growth stood at 17.1% in 2023, followed by a 15.4% rise in 2024 and a further 11.1% increase in 2025, when estimated annual disputes reached 46,950.
That figure represents just 1% of the approximately 4.7 million deposits currently held under protection in England and Wales. However, a separate survey of more than 1,000 UK letting agents, also conducted by LegalforLandlords, suggests that landlords' actual exposure to disputes may be considerably higher.
Key findings from the survey include:
35% of respondents have experienced at least one tenancy dispute, with 16% having dealt with multiple disputes
Rent arrears is the most frequently cited cause (21%), followed by property damage (16%) and end-of-tenancy condition (16%)
Anti-social behaviour accounts for 14% of disputes reported
What the data means for landlords
Duration is a persistent problem. While 32% of respondents say disputes typically last between one and three months, 40% report they extend beyond three months, and more than a quarter (26%) say disputes drag on for over six months.
Court action is the most common resolution route, cited by 20% of respondents. Tenants vacating before resolution accounts for 19% of outcomes, while deposit scheme intervention resolves 18% of cases.
The financial exposure is also significant. Over a third of professionals (36%) report typical dispute costs of between £1,000 and £5,000. One in five (21%) say costs have exceeded £5,000, and 9% report disputes costing more than £10,000. Almost half of the survey respondents (47%) believe tenancy disputes are becoming more common. Only 15% think the frequency is declining.
Why the Renters' Rights Act could intensify disputes further
"Tenancy disputes are rarely straightforward, and they can quickly become both time-consuming and expensive for landlords," said Sim Sekhon, group chief executive of LegalforLandlords. "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."
He added, "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."
What happens next for the property market
With the RRA implementation date approaching, landlords and agents have limited time to review their processes and documentation. Those with ambiguous tenancy agreements or informal dispute resolution practices face the greatest exposure. As tenancy disputes continue rising regardless of legislative change, the data suggests the window for proactive preparation is narrowing.
