Landlords must protect tenancy deposits (capped at 5 weeks’ rent) in a government-backed scheme within 30 days, providing “prescribed information”. Deposits cover damages, cleaning, or arrears, excluding wear and tear. Disputes are resolved via free alternative dispute resolution (ADR).
- Tenancy Security Deposit: The most common type, capped at a maximum of 5 weeks’ rent for annual rents under £50,000.
- Holding Deposit: A payment made to reserve a property, capped at 1 week’s rent.
- Non-monetary Deposit: Items like a car or watch are not required to be protected in a scheme, unlike cash deposits.
- Protection: Deposits for Assured Tenancies must be secured in a government-backed Tenancy Deposit Protection (TDP) scheme within 30 days of receipt.
- Prescribed Information: Landlords must provide tenants with details of the scheme used, the deposit amount, and how to get it back.
- Schemes: There are three authorised schemes
- Deposit Protection Service (DPS),
- MyDeposits, and
- Tenancy Deposit Scheme (TDS).
- Penalties: Failure to protect the deposit can lead to a court ordering the landlord to repay the deposit plus 1–3 times the amount as compensation.
- Allowed Deductions: Unpaid rent, damage beyond fair wear and tear, and missing items.
- Excluded Deductions: “Reasonable wear and tear” (e.g., worn carpet from walking) cannot be deducted.
- Evidence: Landlords should use a detailed inventory, photos, and invoices to justify deductions.
- Return Timeline: The landlord (or their agent) must return the deposit within 10 days of the tenant asking for it, or within 10 days of an agreement on the amount.*
- Dispute Process: If the landlord and tenant disagree on deductions, the case can be referred to the free Alternative Dispute Resolution (ADR) service provided by the TDP scheme.
- Appeals: There is no official appeal against an ADR decision, except by applying to a court, which can be costly and has strict time limits.
* Note: The landlord may need a few days to get estimates or invoices for repairs.
- Unprotected Deposits: If a deposit was not protected, tenants can apply to the county court for compensation.
- Disputing Deductions: Write to the landlord, keep records of correspondence, and request the dispute resolution service.
- Failure to Return Deposit: Write to the landlord requesting the amount to be returned, then use the free Alternative Dispute Resolution (ADR) service if it was protected, or apply to the court if it was not.
