Ireland’s housing crisis has entered a new phase of tension as new data, legal warnings and tenant testimonies show how the absence of an independent Deposit Protection Scheme (DPS) is leaving renters exposed to arbitrary deductions and long delays in receiving deposits worth up to €2,500 back.
Threshold’s Annual Tenancy Protection Report shows that in 2024, 42% of all complaint cases involved deposit retention, making it the single largest source of disputes between renters and landlords.
Figures from the Residential Tenancies Board (RTB) show that more than 3,827 deposit-related disputes were recorded in 2025–2026, a rise linked to soaring rents and intense competition for homes.
CSO data shows the median monthly rent for new tenancies in major urban areas now exceeds €2,500, meaning renters must typically provide a €2,500 deposit, a sum many cannot afford to lose or wait months to recover.
Threshold’s Chief Executive John-Mark McCafferty says the system “creates significant financial stress,” noting that delayed or withheld deposits are now one of the most common reasons renters fail to secure their next tenancy.
1. Growing Demand for Reform
Campaigners are renewing calls for an independent Deposit Protection Scheme that would remove deposits from landlord control entirely, mirroring the system used in England, Scotland and Wales.
Threshold says such a scheme would ensure:
- Deposits are held by a neutral third party
- Money is returned swiftly unless genuine damage or arrears are proven
- Disputes are resolved fairly and transparently
“An independent scheme removes the power imbalance,” Threshold said. “It prevents unfair withholding of thousands of euros from renters.”
Despite RTB guidance that deposits should be returned “promptly,” Irish law provides no fixed timeframe, leading to inconsistent practices across the country.
Threshold argues for a mandatory 14-day return period, which it says should be written into legislation to prevent prolonged financial strain.
The Department of Housing told M10News that it is “studying international best practice” and “reviewing legislative options,” but did not provide a timeline for reform. Minister Darragh O’Brien has expressed “in-principle support”, but no scheme has yet been introduced.
2. The Human Cost: Real Tenants, Real Losses
Case studies show the scale of hardship caused by delayed €2,500 deposits.
Aoife, a young professional in Dublin, told M10News she waited nine weeks to recover her €2,500 deposit even after providing full photographic evidence of a spotless apartment. “I had to borrow money to pay the next deposit,” she said.
Another renter, Ethan, had €430 deducted for “deep cleaning” despite evidence that he left the flat in excellent condition. “Without the RTB, I would have lost even more,” he said.
Housing barrister James O’Donnell BL says such disputes are common. He explains that under Irish law, landlords may retain deposits only for:
- Actual rent arrears
- Damage beyond normal wear and tear
- Outstanding utility bills in the landlord’s name
“Anything else must be backed by evidence,” he said. “Wear and tear is not damage — but that’s routinely misunderstood.”
Threshold advises renters to extensively photograph all rooms at the move-in and move-out stages, noting that photo evidence is often decisive in RTB proceedings.
For standard tenancies, renters can use:
- RTB mediation (free)
- RTB adjudication (€30)
Both processes produce legally binding decisions.
However, licensees or renters living in the landlord’s own home have zero access to the RTB. Their only route is the Small Claims Court, which costs €25 and can take months, leaving many with little practical protection.
3. A System Leaving Renters Exposed
| Feature | Current Irish System | Proposed DPS Model |
|---|---|---|
| Holding Entity | The landlord or agent holds the deposit | Independent third-party deposit scheme |
| Control | Landlord decides on deductions | Neutral body holds funds until both sides agree |
| Return Speed | “Promptly” (not legally defined) | Legally required return within 14 days |
| Dispute Bias | The system favours whoever holds the deposit (usually the landlord) | Evidence-based, balanced dispute resolution |
A growing volume of disputes now stems from booking deposits, usually paid before tenancy agreements begin. If a tenant decides not to proceed, the landlord may legally retain the deposit, and because no tenancy exists, the RTB cannot intervene.
Gardaí have also reported an increase in rental scams linked to booking deposits, warning tenants not to make transfers before verifying properties and agents.
Threshold says the lack of a DPS leaves both renters and landlords vulnerable, but renters bear the brunt of the risk due to the size of deposits and the severity of supply shortages.
Housing analysts warn that with homelessness figures rising and affordability worsening, protecting deposits is one of the simplest reforms available, yet it remains one of the most delayed.
Threshold’s petition to Minister James Browne has gained thousands of signatures demanding urgent action on deposit protection.
The organisation says that without structural reform, Ireland will continue to experience financial disputes, prolonged delays and a rental environment where tenants cannot move without borrowing thousands of euros.
As Ireland’s rental market tightens further, the absence of a DPS means escalating disputes, legal uncertainty and a system in which renters can be left waiting months for €2,500 that legally belongs to them.
“Read more about the broader situation in Ireland’s housing market in our Housing Crisis hub here.”
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