What can a landlord deduct from a tenancy deposit?

A landlord can deduct for damage beyond fair wear and tear, unpaid rent, missing items listed on the original inventory, cleaning costs (where contractually required and reasonable), and costs arising from other breaches of the tenancy agreement.

What is the difference between damage and fair wear and tear?

Fair wear and tear is the natural deterioration caused by normal everyday living — such as minor scuffs, light carpet wear, and small pin holes. Damage goes beyond this and includes things like burns, large stains, broken fixtures, holes in walls, or pet damage.

How long does the tenant have to respond to a deduction proposal?

There is no statutory time limit, but it is customary to allow 14 days for the tenant to respond. If no agreement is reached, either party can refer the matter to the deposit scheme's alternative dispute resolution service.

Can a landlord claim more than the deposit amount?

The landlord can only deduct up to the amount of the deposit held. If the cost of damage or arrears exceeds the deposit, the landlord would need to pursue the tenant through the county court for the additional amount using the small claims track (for claims up to £10,000).

What evidence does the ADR adjudicator expect?

The adjudicator will expect: a detailed check-in inventory with photographs; a checkout report with photographs; evidence of the damage claimed (photographs, description); invoices or quotes for repairs; and any relevant correspondence between landlord and tenant during the tenancy.

Can a tenant be charged for redecoration?

Only if the damage to decoration goes beyond fair wear and tear. A landlord cannot charge a tenant for normal wear to paintwork or wallpaper over the course of a tenancy. However, if the tenant has painted walls an unauthorised colour or caused significant damage, a deduction may be justified.

Deposit Deduction Letter Template

A deposit deduction letter is a formal written notice from a landlord to a tenant setting out the specific deductions being made from the tenancy deposit at the end of the tenancy.

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Landlord Details

Landlord's Full Name*

Landlord's Address*

Tenant Details

Tenant's Full Name*

Tenant's Forwarding Address*

Property Details

Property Address*

Details

Original Deposit Amount*

Itemised Deductions*

List each deduction with description and amount

Total Deductions*

Net Amount Being Returned*

Deposit Protection Scheme*

Date of This Letter*

Options

Photographs of damage are attached as evidence

Invoices or quotes for repair/replacement are attached

Check-in inventory and checkout report are attached

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[landlordName] [landlordAddress] [dateOfLetter] [tenantName] [tenantForwardingAddress] Dear [tenantName], Re: Deposit Deductions — [propertyAddress] Following the end of your tenancy at the above property, I have carried out a checkout inspection and compared the condition of the property against the inventory and schedule of condition prepared at the start of the tenancy. I regret to inform you that I am proposing the following deductions from your tenancy deposit of [depositAmount]. ITEMISED DEDUCTIONS [deductionsList] Total deductions: [totalDeductions] DEPOSIT SUMMARY Original deposit: [depositAmount] Total deductions: [totalDeductions] Net amount to be returned: [netReturn] SUPPORTING EVIDENCE The following evidence is enclosed to support the deductions listed above: YOUR RIGHTS Your deposit is protected with the [depositScheme]. You have the right to: 1. Accept the proposed deductions — in which case the net amount of [netReturn] will be returned to you within 10 days. 2. Negotiate — if you believe any of the deductions are unreasonable, please contact me to discuss. 3. Raise a dispute — if we cannot reach agreement, either party may refer the matter to the [depositScheme]'s free alternative dispute resolution (ADR) service. The adjudicator's decision is binding on both parties. Please respond within 14 days of receiving this letter to confirm whether you accept the proposed deductions or wish to discuss them further. Yours sincerely, ____________________________ [landlordName]

Important Notes

Legal Disclaimer

Deposit deductions are governed by the Housing Act 2004 (sections 213-215) and the terms of the relevant deposit protection scheme. The landlord bears the burden of proof when proposing deductions. Deductions must be for damage beyond fair wear and tear, unpaid rent, missing inventory items, or other breaches of the tenancy agreement. The Tenant Fees Act 2019 prohibits landlords from requiring tenants to pay for professional cleaning unless the property was professionally cleaned at the start and the requirement is reasonable. Each of the three government-approved deposit schemes (DPS, MyDeposits, TDS) provides a free alternative dispute resolution (ADR) service. The adjudicator will review evidence from both parties and make a binding decision. Landlords should retain all evidence for at least six years (Limitation Act 1980).

This template is provided for informational purposes only and does not constitute legal advice. For complex legal matters, we recommend consulting a qualified solicitor.

Frequently Asked Questions

Related Templates

Deposit Return Letter End of Tenancy Letter Property Inspection Notice Letter Eviction Notice Letter