Tenancy Deposit Deductions: What Landlords Can Legally Claim in the UK

Written by Thomson Snell & Passmore LLP Law Firm

Discover what UK landlords can legally deduct from a tenant’s deposit, including rent arrears, damage, and cleaning costs.

Know your rights and avoid disputes.

🏡 Tenancy Deposit Deductions: What Landlords Can Legally Claim in the UK

The tenancy deposit is legally the tenant’s money, and any deductions made by a landlord at the end of a tenancy must be fair, reasonable, and supported by evidence. Whether you’re a landlord or a tenant, understanding what can—and can’t—be deducted helps avoid disputes and protect your rights.

Here’s a detailed breakdown of what landlords can legally deduct from a tenant’s deposit in the UK.

💷 Unpaid Rent

If the tenant leaves without paying the full rent (as agreed in the tenancy agreement), the landlord can deduct the outstanding amount from the deposit. However, use caution: if the full deposit is used to cover rent, no funds remain for damage or cleaning costs.

✅ Tip: Always provide a rent ledger or tenancy agreement as proof in case of dispute.

🔌 Outstanding Bills

If the tenancy agreement makes the tenant responsible for utility bills or council tax, and these remain unpaid at the end of the tenancy, the landlord may deduct these from the deposit. Proof such as final bills is required.

🔧 Damage Beyond Fair Wear and Tear

This is the most common reason for disputes. Damage that exceeds “fair wear and tear” (defined as normal use and aging) is deductible.

Examples of non-deductible wear and tear:

Faded paint

Worn carpets

Minor scuffs on walls

Examples of damage that may be deductible:

Holes in walls

Stained carpets

Broken fittings due to misuse

Under Section 11 of the Landlord and Tenant Act 1985, landlords remain responsible for structural repairs and essential utilities. But they can deduct for tenant-caused damage.

🪑 Missing Items

If items are missing from the property at the end of the tenancy, and they were listed on the original inventory report, landlords can make a deduction. This report should ideally be signed by both parties and include photos.

🧼 Cleaning Costs

Under the Tenant Fees Act 2019, landlords can no longer require tenants to pay for professional cleaning or deduct fees automatically. But, if the property is left unreasonably dirty, they can charge reasonable cleaning costs, with evidence such as a check-out report.

🌿 Garden or Outdoor Maintenance

If the tenancy agreement states that the tenant is responsible for garden maintenance, and the tenant fails to uphold it, landlords can deduct the cost of returning the garden to its prior condition.

⚠️ No agreement = no assumed tenant responsibility.

🏗️ Unauthorised Alterations

If a tenant makes changes to the property (e.g., painting walls, installing shelves) without written permission, the landlord may deduct the cost of restoring the property to its original state.

⚖️ Deposit Dispute Resolution Service (DRS)

If there’s disagreement over deductions, all government-approved Tenancy Deposit Protection schemes offer a free Dispute Resolution Service.

How it works:

Independent adjudicators review written evidence only

Binding decisions are made within 28 days

No need for court involvement

Either party can raise the dispute

Whether you’re a landlord seeking to protect your investment or a tenant disputing unfair deductions, professional support can make the difference.

✅ Summary: What Landlords Can Deduct from a Deposit

📌 Final Thoughts

To avoid disputes, landlords should:

Keep detailed inventories with photos

Record all communication and agreements

Provide final statements with itemised deductions

Tenants should:

Leave the property in good condition

Attend the final inspection if possible

Challenge unfair deductions via DRS

📞 Need Help with a Deposit Dispute?

The DRS offers a fair, fast and free way for landlords and tenants to settle disagreements over deposit deductions. By using the DRS, both parties can avoid the significant cost and complexity of going to court, while ensuring a legally binding outcome.

However, if the DRS is not a service you wish to use or if you require advice on any of the issues mentioned above, our experienced and dedicated team at Thomson Snell & Passmore | Award Winning Kent Law Firm are here to help, so please do not hesitate to contact us.