When you move out, it should be returned to you in full, provided you haven’t caused damage to the property or fittings for which the landlord may deduct replacement or repair costs. The deposit may also be retained to cover unpaid rent or bills, or cleaning costs specified in the contract.
Most landlords will return your deposit to you in full, but some landlords will try to retain your deposit illegally after you leave. A dispute may arise about the condition of the property and whether the landlord has a right to retain any or all of the money for repairs.
Precautions to help you avoid losing your deposit
Always get a written receipt for the money paid (this should have your landlord's name and address on it).
Take pictures when you move in and when you move out. Label your photographs with dates and explanations of what they depict. Pictures can be very useful in proving what the condition of the property was when you arrived and when you left.
Agree an inventory with your landlord before you move in so that they can’t claim for damage done before you moved in. Draw their attention to any outstanding repairs or damage by previous tenants.
Keep a record of any correspondence with your landlord about repairs. Always try to get this is writing – email is fine – as it is difficult to prove what was said via telephone calls.
What if my deposit is not returned at the end of my tenancy?
If you live in an assured shorthold tenancy (AST), your landlord has to protect your deposit in a deposit protection scheme and notify you of where your deposit is being held within 14 days of receiving your deposit. If this doesn’t happen, they are liable to pay you three times the amount of your deposit. There are three schemes that are registered with the government for this process:
The first scheme is a ‘custodial’ scheme, where landlords pay the entire deposit into the scheme where it is held until the end of the tenancy. The other two are ‘insurance’ schemes, where landlords keep the deposit but pay an insurance premium which protects the deposit and a means to fairly decide on the amount of deposit returned if there is a dispute.
If you feel your deposit has been wrongfully withheld, you should seek advice from your students’ union, citizen’s advice bureau, Shelter or another housing advice agency. You can also download our deposit recovery pack for further information.
Visit DirectGov for further information.