Deposits

What is a security deposit?

A security deposit is a refundable sum of money paid to a landlord or letting agent before moving into a property. It acts as security against:

  • Unpaid rent
  • Damage to the property beyond normal wear and tear
  • Missing items such as keys or furniture
  • Cleaning costs if the property is not left in a reasonable condition

For most tenancies in England, a deposit cannot exceed five weeks' rent.

 

Does my security deposit have to be protected?

If you have an Assured Periodic Tenancy (APT) or Common Law Teancy, your landlord must usually:

  • Protect your deposit in a government-approved scheme within 30 days of receiving it.
  • Give you details of how the deposit is protected.
  • Provide information about how to get your deposit back and how to raise a dispute.

The three government-approved schemes are:

If you are unsure, ask your landlord or agent.

 

What if my landlord has not protected my security deposit?

If your deposit should have been protected but was not:

  • Contact your landlord and request confirmation of protection.
  • Seek advice from Unipol Housing Hub, your students' union, Citizens Advice, or a legal adviser.
  • You may be entitled to compensation through the courts.

 

When should I pay my security deposit?

You should not pay a deposit until your tenancy agreement has been signed and you understand the terms of the contract.

Always obtain a receipt or other proof of payment.

 

When should I get my security deposit back?

Once the tenancy has ended and any deductions have been agreed, your deposit should be returned within 10 days.

If deductions are proposed, your landlord should explain:

  • What the deductions are for
  • How much has been deducted
  • Any evidence supporting the deductions

 

What can a landlord deduct from my security deposit?

Landlords can only make reasonable deductions for losses caused during the tenancy.

Reason for Deduction

Typical Cost*

Lost key

£10 - £30

Lock replacement (security risk)

Around £200

Bedroom not cleaned

£25 - £50

Moving furniture left in wrong rooms

£20 - £50

Communal area cleaning

£30 - £100

Descaling a heavily stained toilet

£20 - £50

Defrosting and cleaning a fridge/freezer

£20 - £50

Cleaning a dirty cooker

£40 - £100

Deep cleaning a kitchen in poor condition

£100- £300

Carpet cleaning to communal areas

£50 -£150

Removal of rubbish left behind

£30 - £200+

Refilling misused fire extinguishers

Around £30 each

Damage requiring carpet replacement

From £600+ (depending on area and carpet quality)

*Costs are examples only and will vary depending on location, contractor rates and the extent of any damage. Landlords can only claim for their actual losses and must be able to justify any deduction with evidence. Deductions should reflect the age and condition of the item, taking into account fair wear and tear. If a dispute arises, the relevant tenancy deposit scheme will assess whether the deduction is reasonable.

 

How can I avoid deposit deductions?

When you move in:

  • Take photographs or videos of every room.
  • Check and keep a copy of the inventory.
  • Report any damage or cleanliness issues in writing immediately.

Before you move out:

  • Clean the property thoroughly.
  • Remove all personal belongings and rubbish.
  • Defrost and clean the fridge/freezer.
  • Return all keys on time.
  • Take final photographs as evidence of the property's condition.

 

What if I disagree with deductions?

If your deposit is protected, you can use the scheme's Alternative Dispute Resolution (ADR) service.

Before raising a dispute:

  1. Ask for a written breakdown of deductions.
  2. Request supporting evidence such as photographs, invoices or inspection reports.
  3. Gather your own evidence, including photographs and copies of emails.

If you would like to raise a dispute, you will need to do this within 3 months of the end of tenancy.

 

What about joint tenancies?

With many student houses, the security deposit may be registered:

  • In the name of a lead tenant; or
  • Separately for each tenant.

If there is a lead tenant, ensure everyone agrees on any deduction disputes before accepting any settlement.

 

Can I use my security deposit as my final month's rent?

No. Rent and deposits are separate obligations. Failing to pay rent could place you in breach of your tenancy agreement.

 

What if the deductions are more than the security deposit?

If the landlord can show they have suffered losses greater than the deposit value, they may seek to recover the additional costs from the tenants.

 

What if my landlord offers a no deposit scheme?

A no deposit scheme is an alternative to paying a traditional security deposit at the start of a tenancy. Instead of paying a refundable deposit, you usually pay a non-refundable fee or take out an insurance-backed product that provides protection for the landlord if you owe rent or cause damage.

Find out more about No Deposit Schemes

 

What is a holding deposit?

A holding deposit is a small, upfront payment (capped at one week’s rent) you pay to reserve a property before signing the tenancy agreement. Although normally this period would be a maximum of 15 days, most landlords will ask you to agree in writing for them to extend this time (to bring within 6 months of the moving-in date).  In most cases this is refundable and if not, the landlord must inform you why not.  Often landlords apply it to the first month’s rent but this needs to be agreed with you.  

There are strict rules around the use of holding deposits in the Tenant Fees Act 2019.  Always get advice before paying money, and always get a receipt if you pay cash.

 

I've paid a holding deposit, can my landlord continue advertising the property?

No, under the Tenant Fees Act 2019 (which applies in England), a landlord cannot accept more than one holding deposit for the same property at the same time. Once you pay and have a holding deposit accepted, the property is legally treated as reserved. The landlord must take the listing down or pause marketing and stop considering other applicants during your agreed holding deposit period.  

 

Top Tips

  • Check your security deposit is protected within 30 days of payment.
  • Keep photographs from the start and end of the tenancy.
  • Report any issues in writing as soon as you move in.
  • Arrange a pre-checkout inspection where possible.
  • Remove all rubbish and return keys on time.
  • Keep copies of all correspondence and receipts.
  • Challenge unfair deductions through the deposit protection scheme's dispute service.

The strongest evidence in any deposit dispute is a good inventory, clear photographs and written communication throughout your tenancy.