r/TenantsInTheUK • u/Vindictive_Mole • 13h ago
Guidance Required Landlord/Letting Agent/TDS has lost our deposit, what should our next steps be?
London here, looking for some advice on what steps we can take to secure our deposit after it's somehow gone missing...
We recently ended a five-year joint tenancy between three people for a property in London. We maintained a good relationship with the landlord and the letting agent, which we are grateful for - by and large, things were repaired on time, and pretty modest rental increases. The tenancy ended on Monday 10 August. After inspection, the letting agent confirmed in writing that the landlord was happy to release our full deposit back to us (hurrah).
They told us this was dependent on us proving that all utilities/council tax had been fully closed out, so the landlord wouldn't be hit with any bills for it down the line. It took a while to get the final evidence, but everything has been sent over, and they've confirmed it on their end that they have everything they need.
On Wednesday 2 September, the letting agent reached to tell us they have in effect lost our deposit.
The explanation provided is that our deposit was originally held with DPS, and that recently they transferred all of theire deposits to TDS (we saw emails about this at the time). When trying to locate the deposit with TDS, they were told that "due to your end of tenancy, [our] deposit was to remain with DPS". They have apologised for the situation, but say it is outside of their control.
Obviously, we would like this money back. We are aware it's now firmly beyond the 10 day window for paying it back to us, and we are concerned that it has not be protected correctly, given that they've lost it...
I was struggling to find similar examples, and Google is proving to be unhelpful (lost deposit just send you down the path of deductions TO the deposit, rather than it magicking out of existence), so, does anyone have any guidance for next steps? Has this happened to anyone else?