Tenancy Deposit Dispute Resolution

When you and your landlord cannot agree on deposit deductions, either party can refer the dispute to the ADR service operated by the deposit protection scheme holding the deposit. The ADR service is free for both parties and is an alternative to going to court. The three government-approved schemes — Tenancy Deposit Scheme (TDS), Deposit Protection Service (DPS), and mydeposits — all operate ADR services.

The process typically works as follows:

1. The tenancy ends and the landlord proposes deductions.
2. If you dispute the deductions, either party can refer to ADR within a set timescale (check your scheme's rules — usually three months from when the deposit should have been returned).
3. Both parties submit their evidence — inventory reports, photographs, receipts, and written statements.
4. An independent adjudicator reviews all evidence and makes a decision, usually within 28 days of receiving all evidence.
5. The decision is binding and the scheme releases the deposit accordingly.

You do not need a lawyer — the process is designed to be accessible to tenants acting on their own behalf.

The adjudicator will base their decision on the documentary evidence submitted. The most important evidence is:

• Check-in inventory: A detailed written and photographic record of the property's condition at the start of the tenancy, signed by both parties.
• Check-out inventory: A similar record at the end, ideally conducted with you present.
• Photographs: Dated photographs of each room and item at check-in and check-out. Photos without metadata showing the date are less persuasive.
• Receipts: If the landlord is claiming the cost of repairs or professional cleaning, they should provide receipts or quotes from contractors.
• Written communications: Emails or letters between you and the landlord about repairs, maintenance, or the condition of the property.

The burden of proof is on the landlord to justify deductions. If the landlord cannot produce a check-in inventory or adequate photographic evidence, the adjudicator is unlikely to award them a deduction.

Adjudicators must distinguish between damage (which can be charged) and fair wear and tear (which cannot). Fair wear and tear means normal deterioration from reasonable everyday use over the period of the tenancy. Examples:

• Fair wear and tear: Faded or slightly worn carpets; minor scuffs on walls from normal use; worn paint in high-traffic areas; slight discolouration of grout over time.
• Not fair wear and tear: Burns or stains on carpets; large holes in walls; pet scratches on doors or furniture; mould caused by poor ventilation by the tenant.

Adjudicators also apply a principle of betterment — they will not award the full cost of a new replacement if the item being replaced was already old or worn. For example, if a five-year-old carpet is damaged, the landlord may be awarded the depreciated value of the carpet, not the cost of a brand new one. Providing evidence of the age and original cost of items helps the adjudicator make a fair assessment.

The Renters' Rights Act 2025 retains the core deposit protection framework established by the Housing Act 2004 but makes important adjustments that tenants in dispute should understand.

Deposit cap and the new periodic tenancy system

With the abolition of fixed-term ASTs, all tenancies under the new regime are periodic from the outset. The security deposit cap of five weeks' rent (for annual rent under £50,000) continues to apply. The deposit remains protected throughout the periodic tenancy — there is no mechanism to require a top-up deposit when rent increases, and any attempt to do so would constitute a prohibited payment under the Tenant Fees Act 2019.

Deductions at the end of a periodic tenancy

Under a rolling periodic tenancy, the end of the tenancy is triggered by either party giving notice. The same deposit dispute process applies: the landlord has 10 days to return the agreed amount or propose deductions. If deductions are disputed, either party can refer to the scheme's ADR service. The absence of a fixed-term end date does not change the adjudication process or the evidence standards.

Deposit protection: the prescribed information requirement

Your landlord must protect your deposit in a government-approved scheme within 30 days of receiving it AND provide you with the prescribed information about the scheme within the same period. The prescribed information must include the scheme's details, the adjudication process, and confirmation of the deposit amount. If either obligation was not met, you can claim a penalty of between one and three times the deposit value in the county court — even if the deposit has subsequently been protected. Courts have held that late compliance does not eliminate the landlord's liability for the initial failure.