Experts say the system only makes it more difficult for people to afford housing. It costs £808 on average to secure a home even before any rent is paid, according to 2021 analysis by renters campaign group Generation Rent, with reports that some tenants are being forced to pay up to six months’ rent as a deposit.
“The process of reform cannot be held back by landlords’ vested interests any longer,” said chief executive Ben Twomey, calling for the new government to “stand up to people profiting from weak tenants’ rights”.
How long does a landlord have to notify you of damages?
If a landlord wants to take a deduction from your deposit, they have to tell you about it within a certain timeframe. That depends on where you are in the country.
In England and Wales, landlords have up to 10 days from when you request your deposit back (which you should do as soon as you move out). In Scotland, landlords have 30 days to let you know they want to keep part of your tenancy deposit.
They should give you a detailed list of damages or losses alongside reasonable estimates for repairs, to ensure everyone is clear on how much money is being taken and why.
If a landlord only returns part of your deposit without getting your agreement first, you still have the right to challenge the decision.
How long does a landlord have to return a deposit?
The timeframes are the similar – in England and Wales, your landlord has 10 days from when you ask for your deposit to return it. You should request your money back in writing or by email.
In Scotland, your landlord should contact the deposit scheme provider as soon as possible after you move out. If they want to make any deductions, the provider will explain this to you, and you have 30 days to either agree to the amount or open a dispute.
The process for your landlord returning the deposit varies depending on which, if any, scheme they used to hold it during your tenancy.
How to get your deposit back
Getting your deposit back from your landlord begins well before you move out. Make sure you agree a date with them for the end of your tenancy, and get it in writing. This should mean there is no confusion over when your deposit is due to be returned to you.
If your landlord hasn’t returned your deposit or contacted you about it and more than a week has passed since your tenancy ended, you can request it from them in writing or by email. Consult the Shelter website for your region for more details and letter templates to make your deposit request easier.
Depending on how your deposit is being held, you might only need to contact the deposit scheme provider to request your money back. If the deposit is being held in a custodial scheme, you can usually ask for it back through your online account.
You might also have to contact the deposit protection provider used by your landlord if you can’t agree on how much of it you are due back, or if you don’t hear back from the landlord.
What are deposit protection schemes?
Wherever you are in Britain, your landlord has to place your deposit in a government-approved deposit protection scheme to protect it. They must also write to you to tell you which scheme they are using.
If you find out that your landlord hasn’t put your deposit into a scheme, you are entitled to take them to a tribunal. But that can be costly – so you might choose to speak to your landlord first and ask them to follow the correct process with your deposit.
If you do take legal action, a court could decide on a variety of consequences for your landlord. In some cases they are told to pay the tenant compensation to the value of three times the deposit.
Deposit schemes in England and Wales
If you have an assured shorthold tenancy, which is the agreement most private renters have with their landlords, your landlord has to follow strict protocol to protect your deposit.
It can be registered with:
Your landlord or letting agent has to place your deposit in the scheme within 30 days of you giving it to them. You can check online if you’re unsure which type of scheme your money is being held in.
Each provider has a custodial scheme, through which the organisation holds onto the money, or an insurance scheme which allows the landlord to keep the money themselves during your tenancy.
Deposit schemes in Scotland
Landlords in Scotland must put your deposit into a scheme within 30 working days of your tenancy starting.
They must then write to you detailing how much you paid as a deposit, when they received it and when they placed it in the tenancy deposit scheme.
The landlord should also provide you with written confirmation that they are registered as a landlord with the local council.
Landlords and letting agents can use these schemes in Scotland:
Remember a landlord can’t charge any more than the equivalent of two months’ rent for a deposit.
How does a landlord return a deposit?
Your deposit will most likely be returned to you by bank transfer, but it can be paid in cash or by cheque depending on what you and your landlord agree.
Disputing security deposit deductions
If you don’t agree with your landlord’s decision to keep part or all of your deposit and have evidence to back you up, you can dispute the decision.
“It is vital that tenants feel able to challenge the minority of landlords failing to provide safe housing or a good enough service,” said Dr Jennifer Harris, head of policy at the Tenant Deposit Scheme Charitable Foundation.
That proof might include the inventory you were given when you moved in, pictures taken at the beginning and end of your tenancy, or alternative quotes for repairs which are cheaper than what the landlord is suggesting.
They cannot legally take money from your deposit to cover what’s considered fair wear and tear or property repairs they’re responsible for as long as you reported any issues.
All tenancy deposit schemes offer free dispute services to resolve the issue between tenant and landlord or letting agent. But you will likely need to demonstrate that you tried to address the issue with your landlord first.
The scheme will consider both parties’ evidence and make a decision.
If your landlord refuses to use the scheme’s resolution service, you might decide to take them to court to get your deposit back.
If you need help at any stage in the process – whether you’re preparing to pay a deposit for a new home, or your ex-landlord is refusing to refund your money – contact your local tenants union, Shelter or Citizens Advice for tailored support.
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