London has the highest proportion of rental disagreements between landlords and tenants, accounting for 37% of all cases in the last year.
The data, by rental deposit replacement scheme, Ome, found that the South East came second with 16% of all disputes, with 11% being in the North West.
Poor communication on why the deposit was withheld was the most frequent cause for disputes across every region other than the South East.
In the South East the cleanliness of a property at check-out was found to be the number one cause of a dispute.
Matthew Hooker, co-founder of Ome, said: “Deposit disputes have always been a bone of contention within the rental industry and despite the sector’s diverse makeup, they tend to focus on the same issues concerning outstanding payments, damage, cleanliness, and missing inventory wherever you are.
“The introduction of formal dispute resolution has, at least, eased the burden from the courts and a standardised approach has raised standards in the sector. However, despite this rental deposits remain a friction point for many tenants and landlords.
“This tends to be most prevalent within London where the sums being disputed are far higher than other regions but as the data shows, the number of cases fluctuates regionally and will continue to do so year to year.
“Unfortunately, there’s no one solution that can fix all when it comes to deposit disputes and it’s imperative that the industry continues to deal with each dispute on a case by case basis with an impartial body regulating this practice.”