Who pays a security deposit? 

Most tenants in rental accommodation will be asked to pay a deposit. This includes lodgers, students in university accommodation, and most private renters.  

In a joint tenancy, the deposit may be split equally amongst all tenants, or split according to each tenant’s rent amount. 

How much should a security deposit be? 

The deposit amount depends on the rent amount.  

• If the annual rent is less than £50,000, the deposit cannot be more than 5 weeks’ rent. 

• If the annual rent is more than £50,000, the deposit cannot be more than 6 weeks’ rent. 

This amount is declared by the Tenant Fees Act 2019. If a landord asks for a higher amount, it is a prohibited payment.  

This stays the same for joint tenancies. The maximum deposit amount is 5 or 6 weeks of the total annual rent for the property. This amount is then split across the tenants.  

Where does the security deposit go? 

There are a few ways in which a landlord can protect a deposit.  

For an Assured Shorthold Tenancy (most private tenancies), the landlord must use one of the three government-approved scheme administrators: 

• Deposit Protection Service (DPS) 

• MyDeposits 

• Tenancy Deposit Scheme (TDS) 

This will protect the deposit during the tenancy. The landlord will decide whether the protection will be custodial or insurance-backed. 

• Custodial scheme: The landlord transfers the full deposit to the administrator. The deposit is only released when both the landlord and tenant have stated that the tenancy has ended, and have agreed to any deductions. 

• Insurance-backed scheme: The landlord keeps the deposit money throughout the tenancy, but pays a fee to the administrator. At the end of the tenancy, the landlord returns the deposit to the tenant, with only agreed deductions. If the landlord does not return the deposit, or makes deductions without the tenant’s consent, the tenant can make a claim through the scheme. 

How is deposit protection documented? 

Once the deposit has been paid, the landlord has 30 days to lodge it in a protection scheme, and send the details to the relevant person (whomever paid the deposit, usually the tenant). This is called the Prescribed Information. 

Prescribed Information includes: 

• The contact details of the landlord or agent  

• The contact details of the deposit protection scheme. 

• The deposit amount and when deductions may be taken 

• The address of the tenanted property 

• Information about the deposit protection scheme and its dispute resolution service 

• The signature of the landlord or their agent 

How do I get my deposit back?

At the end of the tenancy, the landlord no longer needs the deposit and they must return it to the tenant. The landlord may return the deposit in full, or they may deduct some (or all) of the deposit to cover costs incurred by the tenancy.  

The landlord or their agent will perform a check-out inspection of the property after all tenants have vacated. They will note any issues or damage. They will decide how much money is needed to pay to resolve the issues and will notify the tenant that this amount will be deducted from their deposit. 

The tenant can choose to accept or dispute the deductions. If accepted, the landlord will notify the deposit protection scheme. The remaining deposit amount will be returned by the landlord or the deposit protection scheme within 10 days. 

To avoid deductions from your deposit, it is recommended that you

• Make sure you have met your end-of-tenancy obligations. These will be stated in your contract.
• Ensure you leave the accommodation in good condition.
• Attend any check-out appointments and ask the landlord to sign the check-out inventory. If there is no inventory, take photos of the condition of the accommodation before you leave.

What can be deducted from a deposit? 

Landlords can make reasonable deductions from tenancy deposits to cover costs resulting from the tenancy. 

Reasonable deductions may include: 

• Unpaid rent or utility bills 

• New damage to the property, appliances, furnishings, or furniture 

• Missing or broken items or appliances 

• Ending the tenancy early without giving necessary notice 

• Cleaning costs (but only to the same standard of cleanliness as it was when the tenant moved in) 

• Gardening costs (but only to return the garden to the same state as it was when the tenant moved in) 

• Removal of tenant’s belongings 

• Rectifying any significant changes the tenant made without consent 

• Damage caused by a pet 

The deductions must relate directly to the costs involved in fixing these issues. The intent is to restore the property to the state it was in when the tenant arrived, but not to improve the property.  

What if the deductions seem unfair? 

It is very common for tenants and landlords to disagree on proposed deductions from tenancy deposits.  

If the tenant disputes the deductions, they may negotiate with the landlord to decrease or dismiss the deductions. It is recommended that all communication is made in writing. 

If the tenant and landlord cannot reach an agreement, they can ask their deposit protection scheme to help resolve the dispute. The deposit protection scheme administrators will not act without consent from both the landlord and the tenant. 

Every deposit protection scheme has its own dispute resolution service: 

1. The landlord and tenant submit their evidence. This may include photos from before and after the tenancy, written communication with the landlord, and invoices or bills. 

2. An impartial adjudicator will review all evidence and decide which deductions (if any) are reasonable. 

3. The landlord and tenant receive the adjudicator’s report. 

In some cases, tenants and landlords may need to take court action to settle deposit disputes.