DPS (Deposit Protection Service) Dispute Guide: How to Get Your Deposit Back

What the Deposit Protection Service Is

The Deposit Protection Service (DPS) is one of the three government-approved tenancy deposit protection schemes in England and Wales. It is the only scheme that is entirely free to landlords for its custodial product — the DPS Custodial scheme holds the deposit and earns revenue from interest on the pooled funds rather than charging landlords a protection fee.

DPS also operates an Insured scheme where landlords hold the deposit and pay a fee to DPS for insurance cover.

As of 2025, DPS protects several million deposits. The custodial model's free positioning has made it widely used, particularly by smaller private landlords and those with self-managed tenancies.

The Two Schemes: Key Differences for Disputes

**DPS Custodial**: The deposit sits in a DPS-held account. At the end of the tenancy, both parties submit their positions through the DPS portal. If they disagree, the disputed amount is automatically held by DPS during adjudication. This is the cleaner model for dispute resolution because the funds are already ring-fenced.

**DPS Insured**: The landlord holds the deposit. If the tenancy ends in dispute, the landlord must pay the disputed amount into DPS before adjudication can proceed. If a landlord refuses or is unable to pay this in (for example, if they have already spent the deposit money), the tenant may need to pursue recovery through the courts rather than adjudication. This is a structural weakness of the insured model that tenants should be aware of.

Initiating a Dispute

Either party can initiate a deposit dispute through the DPS website (depositprotection.com) once the tenancy has ended. The process:

1. The party raising the dispute submits a claim explaining the amount disputed and the reasons

2. DPS notifies the other party, who has 14 days to respond

3. If the other party does not respond within 14 days, DPS may release the deposit to the party who raised the dispute

4. If both parties respond, the case proceeds to adjudication by DPS's independent adjudicators

Building Your Case

As with all deposit scheme adjudications, the decision is made on documentary evidence alone. The DPS adjudicator does not visit the property, speak to witnesses, or consider evidence that was not submitted in writing.

**Essential documents**:

• A signed, dated inventory from the start of the tenancy, ideally with photographs
• A check-out report or condition record from the end of the tenancy
• Dated photographs showing condition at check-in and check-out
• Invoices for any cleaning or repair work claimed by the landlord
• Correspondence relevant to the dispute, including any maintenance requests

**Common tenant mistakes**:

• Relying on verbal agreements that were never documented
• Failing to photograph the property at the start and end of the tenancy
• Not reading the check-in inventory carefully and raising issues in writing at the start
• Assuming that age of an item means all wear is acceptable (wear and tear must be proportionate to the item's age and the tenancy duration, but does not excuse actual damage)

**Common landlord mistakes**:

• Attempting to claim for pre-existing damage not noted in the inventory
• Submitting estimates rather than invoices for cleaning and repairs
• Claiming for betterment (replacing a five-year-old carpet with a new one and charging the full cost)
• Missing the deposit protection deadline, which can expose the landlord to a penalty of up to three times the deposit amount

The Adjudication Process

DPS uses trained independent adjudicators. The process is document-based and typically takes around 28 working days from when all evidence is received. Decisions are based on the balance of probabilities standard.

DPS publishes a useful guide on what constitutes fair wear and tear, which is worth reading before building your case. The key principle is that some deterioration in a property's condition during a tenancy is normal and expected; the question is whether the deterioration exceeds what would be expected given the property's age, condition, and the duration of the tenancy.

When Adjudication Is Not Enough

If a landlord has failed to protect the deposit at all, the tenant's remedy is not the scheme's dispute process — it is the courts. An unprotected deposit entitles the tenant to a court order returning the deposit plus a penalty of one to three times the deposit amount. In this scenario, tenants should take legal advice or contact a housing charity such as Shelter or Citizens Advice.