Up to a million private sector tenants with combined deposits worth up to £1bn are missing out on deposit protection, the TDS has claimed.
It said that the number of tenants affected is set to grow rapidly as the rental market soars.
It added that the average deposit amounts to £1,000.
Failure to register a tenant’s deposit can cost the landlord a penalty of three times its value. At today’s rental values, this can mean that an average penalty of £3,000 is due to the tenant.
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