The 10 calendar day rule
Once a tenancy ends and both landlord and tenant agree on the amount to be returned, the landlord must repay within 10 calendar days. This applies to both insurance-based and custodial tenancy deposit schemes. The 10-day clock starts from agreement — not from the tenancy end date. The undisputed portion of any deposit must be returned within 10 days even while a dispute over deductions is being resolved.
Permissible deductions
- Damage beyond fair wear and tear: broken furniture, stained carpets, holes in walls
- Cleaning: professional cleaning to restore the property to check-in condition
- Unpaid rent outstanding at the date the tenancy ended
- Replacement of landlord-supplied items broken by the tenant (less betterment allowance for age)
- Unpaid utility bills or council tax in the tenant's name
Fair wear and tear
Fair wear and tear is normal deterioration through regular use. It is not a permissible deduction. Examples of fair wear and tear include minor scuffs on painted walls, thinning carpet in high-traffic areas, and faded curtains. Adjudicators apply a betterment principle — if a 5-year-old carpet is replaced, the deduction reflects the residual useful life of the original, not the full replacement cost.
What if landlord and tenant cannot agree?
- Step 1 — ADR: refer the dispute to the scheme's free Alternative Dispute Resolution service. An independent adjudicator reviews evidence and issues a binding decision typically within 28 days
- Step 2 — County court: either party can issue a county court claim instead of ADR, or if ADR is refused by the other party. Timelines are typically 3–6 months
- Evidence is everything: check-in inventory, check-out photos, dated invoices, and comparisons between check-in and check-out state determine the outcome
Consequences of late or non-return
- County court claim for full deposit plus interest
- If deposit was not protected within 30 days: court order of 1x–3x deposit value as additional penalty
- Impact on future possession proceedings
- Potential HMO licence revocation for persistent non-compliance
From 1 May 2026, Section 21 no-fault eviction is abolished. Landlords who previously used a Section 21 notice as leverage to pressure tenants into accepting disproportionate deductions no longer have that option. Deposit deductions must be justified by evidence.
This guide is accurate as at 27 May 2026. It is provided for information purposes only and does not constitute legal advice.