Tenancy Deposit Schemes UK: Protection, Disputes and Getting Your Money Back

In England and Wales, all landlords who take a tenancy deposit for an assured shorthold tenancy (AST) must protect it in a government-approved scheme within 30 days. Failure to do so gives the tenant the right to claim compensation of between one and three times the deposit value.

The Three Government-Approved Schemes

**Custodial scheme:** The landlord pays the deposit to the scheme, which holds the money.

**Insured scheme:** The landlord keeps the deposit but pays a fee to insure it. The landlord is responsible for returning it at the end of the tenancy.

Landlord Obligations

Within 30 days of receiving the deposit, the landlord must:

1. Protect the deposit in a government-approved scheme

2. Provide the tenant with the “prescribed information” — a set of details specified in law including which scheme has been used, how to contact the scheme, and the circumstances in which deductions may be made

Failure to comply entitles the tenant to claim a penalty of 1–3x the deposit through the County Court, even if the deposit is later protected out of time.

What Can a Landlord Deduct From the Deposit?

A landlord may make deductions for:

• Unpaid rent
• Damage beyond fair wear and tear
• Missing items from the inventory
• Cleaning costs (where the property is left in a condition worse than it was let)
• Outstanding utility bills

A landlord **cannot** deduct for:

• Fair wear and tear (gradual deterioration from normal use)
• Pre-existing damage that was not documented at the start of the tenancy
• Any cost the landlord would have had to bear anyway (e.g., repainting after 5 years)

How Disputes Work

If the landlord and tenant cannot agree on deductions, either party can raise a dispute with the scheme. This is free and legally binding.

The dispute process:

1. Either party raises a dispute within the scheme’s designated window (typically within 90 days of the tenancy ending)

2. Both parties submit evidence: check-in report, check-out report, invoices, photographs, correspondence

3. The scheme appoints an adjudicator (an independent specialist)

4. The adjudicator reviews the evidence and issues a decision within 28 days

5. The decision is final and binding on both parties

How to Win a Deposit Dispute as a Tenant

The burden of proof is on the landlord to justify deductions. To strengthen your position:

• Take photographs of every room at check-in and check-out
• Request a professional check-out report (done by an inventory clerk, not the landlord)
• Report issues in writing during the tenancy (email is best — creates a paper trail)
• Return the property in the same condition as you received it, accounting for fair wear and tear

If the landlord claims for something that was damaged at check-in, the adjudicator will look for evidence that it was undamaged when you moved in. A detailed check-in inventory, signed by both parties, is your strongest protection.

Timeline for Returning the Deposit

At the end of the tenancy, the deposit must be returned within 10 days of both parties agreeing the amount. If there is a dispute, the undisputed portion must be returned within 10 days.

If the landlord fails to return the deposit within a reasonable timeframe without justification, the tenant can apply to the County Court for its return.

Deposit Caps Under the Tenant Fees Act 2019

Since 1 June 2019, deposits for new tenancies are capped at:

• **5 weeks’ rent** for tenancies with annual rent under £50,000
• **6 weeks’ rent** for tenancies with annual rent of £50,000 or more

Deposits exceeding these caps must be refunded to the tenant. Charging a deposit above the cap is a prohibited payment under the Tenant Fees Act.

What If the Landlord Is Not Complying?

If your landlord has not protected your deposit:

1. Write to the landlord asking them to confirm which scheme holds the deposit

2. If no satisfactory response, apply to the County Court for a penalty claim (1–3x the deposit)

3. You do not need a solicitor — the claim can be made through the Money Claim Online service

Note: even if the landlord protected the deposit late, you may still have grounds for a penalty claim for the period it was unprotected.