A new study has estimated that up to £67.7 million in tenancy deposits may have been unfairly withheld from renters over the last two years. Around one in five tenants who left a property during this period said they had some of their deposit retained, equal to approximately 722,937 households.Worryingly, the vast majority of these renters feel the funds were kept unfairly.

The figures come from Go.Compare home insurance, which applied the results of its latest renters survey to ONS data on UK households. Based on the number of tenants who felt their deposit was unfairly withheld, renters have lost a fortune in wrongly retained deposits in the last couple of years. Now, an expert has shared advice on what tenants can do if they find themselves in this scenario.

The home insurance comparison site estimated that landlords typically retained around £125 of an overall deposit, meaning a staggering £90.7 million was withheld within the last two years. Disappointingly, three-quarters of these tenants said they felt the money was withheld unfairly, equal to an estimated 539,528 households and millions in lost funds.

Those on a lower income were more likely to feel that their deposit was unfairly taken. Over three-quarters (77%) of these renters stated this, compared to two-thirds of higher earners. Women were also slightly more likely to feel that the decision was unfair. A huge 79% of women who lost their deposit during this period felt this way, compared to 69% of men.

The study found that it’s older tenants who are more likely to lose the most. Nearly a quarter (24%) of over-54s lost over £1,000 when having some of their deposit withheld. In comparison, only 6% of under-35s who left a rental property during this time had over £1,000 of their deposit retained. This could be due to older tenants potentially paying higher rents at bigger properties, requiring larger deposits.

Nathan Blackler, home insurance expert at Go.Compare, said: “Deposit returns can be a source of friction when tenancies come to an end. Clearly, most renters who’ve experienced this feel their money was kept unfairly. If this is the case, it means landlords are wrongfully retaining thousands of pounds of deposits.

“To minimise the chances of losing your deposit, take photos of the property when you first move in and when you leave to show how you left it compared to the start of your tenancy. You can also ask your landlord to sign a checkout inventory that covers the condition of the fixtures and fittings. Make sure all outstanding fees for the property have been paid, too.

“If you do lose some of your deposit but feel it’s been kept wrongfully, you can dispute it via your deposit protection scheme. If your deposit wasn’t put in a protection scheme, you’ll need to go to small claims court. Consider going to Citizens Advice before deciding what action to take, as they could help you to assess your circumstances and decide on the best option going forward.”

More information about withheld deposits can be found on Go.Compare’s website.