A report by the National Association of Citizens Advice Bureaux (NACAB) says that almost half of all private tenants find that when they move home all or part of their deposit is withheld for no good reason.

Independent organisation

The NACAB says at the moment all tenants can do is write off the loss or go to court, which can take a long time with no guarantee that even an order in their favour will produce any cash.

It is calling for a new independent body to be set up to hold deposits and ensure they are paid back fairly at the end of tenancies.

The organisation - based on Australia's National Rental Deposit Board - would be financed by the interest generated by the money it held in bond.

Tenants cheated

Last year around £240m was paid out in deposits by tenants at an average of £409 each.

The NACAB survey found up to 48% of tenants had lost an average of £310 of their deposit when they moved out.

Only one in six of these people had been successful in getting their money back.

In one case a West London man paid a cleaning company to clean his flat when he moved out, but the landlord still withheld £390 to clean the flat.

A Kent couple lost £500 even though the landlord agreed that everything was in order with the house.

NACAB's chief executive David Harker said: "It is a scandal for this state of affairs to be allowed to continue when a simple, tried and tested solution is available, which is better for tenants and landlords alike."

Landlords also seeking protection

The call for a National Rental Deposit Board is supported, in principle, by Phillip Cook, the Chairman of the Association of Residential Letting Agents.

He feels action is needed to protect landlords as well as tenants.

"There is abuse on all sides. This system offers no safeguards against tenants who just don't pay the last month's rent because they know they've abused the property and are not going to get their deposits back," he said.

"That leaves the landlord with no money to put right the damage.