Less than 1 per cent of private tenancies in Britain end in a dispute over the deposit, a new report shows.

It is the eighth year in a row that disputes arising from deposits have been below 1 per cent, according to the report from the Tenancy Deposit Scheme (TDS).

Cleaning was the most common contributing factor to deposit disputes for the sixth year running and was cited in 54 per cent of all disputes adjudicated in 2017/2018.

Damage (49 per cent), decoration (31 per cent), rent arrears (20 per cent) and gardening (16 per cent) were the next most likely causes of a dispute.

The report also shows that since 2010, there has been a 26 per cent rise in the average deposit value for England and Wales from £880 to £1,110.

TDS chief executive Steve Harriott said “As the private rented sector and the need for robust deposit protection continues to grow, as it has done over the last decade and more, it’s important to take stock of where we are and look for trends.

“Despite the number of tenancy deposits protected increasing by over 300 per cent in the last ten years, the rates of disputes have remained regularly below 1 per cent.

“That means the overwhelming majority of tenancies end in agreement between the tenant and the landlord or letting agent about how the deposit is awarded.”

Richard Truman, Head of Operations at Simple Landlords Insurance, said: “This is really encouraging news which reinforces the need to take a deposit from tenants at the start of a tenancy to protect your property against damage.

“However, changes to the law mean landlords could lose out financially if they don’t follow the rules regarding those deposits.”

Check out our Simple Landlords Insurance Guide to tenancy deposit schemes to help you bypass the pitfalls.