The complaint

A landlord complained to The Property Ombudsman that their letting agent failed to register their tenants’ deposit with a government-approved scheme within the required 30 days of receiving it. The deposit was not registered until almost a year later, and the landlord said they were never informed of the delay.

After the tenants moved out, they took legal action against the landlord for failing to protect their deposit. As a result, the landlord incurred £7,296.92 in losses and sought to recover this amount from the letting agent, arguing that their failure to meet their legal obligations had directly caused her financial loss.

The letting agent accepted that they had not registered the deposit within the required timescale. They offered to cover 50% of the landlord’s compensatory and legal costs but did not provide further explanation for why they would not reimburse the full amount.

The investigation

The Ombudsman found that the letting agent had clearly failed to comply with its responsibilities under the law and The Property Ombudsman Code of Practice, which requires deposits to be protected within 30 days.

The evidence showed that the business realised the deposit was unregistered in December 2022 and registered it at that time, but they failed to inform the landlord of the situation. This meant they had no opportunity to take action to reduce their losses or protect herself from a potential legal claim.

The Ombudsman concluded that the landlord’s financial losses were a direct result of the letting agent’s failings. It was their duty to register the deposit, and their inaction placed the landlord at legal and financial risk through no fault of her own.

The outcome

The Ombudsman awarded the landlord £7,296.92 in compensation for her financial loss and a further £800 for the aggravation, distress and inconvenience caused by the letting agent’s failure to register the deposit, notify her of the issue, or engage with her when concerns were raised.

In total, the landlord was awarded £8,096.92, marking a full and final settlement of the dispute.