Tenancy deposit deductions: What landlords and letting agents can (and cannot) claim for at the end of tenancy

This informal CPD article ‘Tenancy deposit deductions: What landlords and letting agents can (and cannot) claim for at the end of tenancy’ was provided by Sandy Bastin, Director of Resolution at TDS Group, a leading tenancy deposit protection and resolution service provider in the UK.

At the end of every tenancy, landlords and letting agents typically face the same question: what can legitimately be deducted from a tenant's deposit? Get it right, and the process is straightforward. Get it wrong, and you risk a dispute, a failed adjudication, and a damaged landlord/tenant relationship. This article sets out the key categories of claimable and non-claimable deductions, and what adjudicators look for when deciding whether a claim is justified.

What exactly a deposit is for?

Before considering what can be claimed, it is worth being clear on what a deposit is for. Under the Housing Act 2004 (1), deposits taken for private rented tenancies in England and Wales must be protected in a government-approved scheme within 30 days of receipt (2). The deposit belongs to the tenant and it is held as security against specific, evidenced losses at the end of the tenancy. It’s not there to use for general maintenance, upgrades, or end-of-tenancy costs that fall to the landlord as part of normal property management. The Renters' Rights Act 2025 reinforces this principle, strengthening tenants' rights to challenge deductions they consider unfair (3).

What can be claimed?

Deductions are broadly permissible in four categories, provided they are supported by clear evidence:

  • Unpaid rent. Any rent outstanding at the end of the tenancy can be claimed from the deposit, provided it is clearly evidenced, typically through rent statements or bank records.
  • Damage beyond fair wear and tear. Landlords can claim for damage caused by the tenant's negligence, misuse, or deliberate action. This includes large stains on carpets or upholstery, burns on worktops or furniture, holes in walls beyond normal picture hanging, broken fixtures or fittings, and pet damage such as scratching, staining, or odour. The distinction between damage and fair wear and tear is one of the most common sticking points in deposit disputes. In short: fair wear and tear is the natural deterioration of a property through ordinary use and cannot be claimed for. Damage that goes beyond that can be.
  • Cleaning. If a property is returned in a dirtier condition than it was at check-in, a landlord can claim for cleaning. This is generally the single most common category of deposit dispute year after year. The key word is condition; the tenant is not required to return the property in a professionally cleaned state if it was not professionally cleaned at the outset, however, it does need to match how the property was described at check-in.
  • Redecoration. If a tenant has altered the decoration of a property without the landlord’s consent, painting walls for example, and the tenancy agreement requires them to return the property to its original condition, the cost of restoring this can be claimed. Adjudicators will factor in the age and condition of the original décor, and whether a full repaint or touch up is reasonable.
  • Unpaid bills or other contractual obligations. Where the tenancy agreement specifies that the tenant is responsible for certain bills or costs, and those remain outstanding, a deduction may be permissible, provided the agreement is clear and the liability is evidenced.
cpd-TDS-Group-Housing-Act-2004
Housing Act 2004

What cannot be claimed?

Equally important is understanding where deductions will not succeed:

  • Fair wear and tear. Natural deterioration through reasonable use (minor scuffs, light carpet flattening, gradual fading of paintwork) cannot be charged to the tenant. This applies regardless of how long the tenancy was, or how visible the wear is.
  • Betterment. A landlord cannot use a deposit to upgrade a property beyond its condition at the start of the tenancy. If a worn carpet is replaced with a higher-specification one, the tenant cannot be expected to fund that improvement. Adjudicators will assess the age and remaining useful life of an item and apportion any award accordingly.
  • Pre-existing damage. Any damage present at the start of the tenancy is not the tenant's liability. This is one of the strongest arguments for a thorough, photographic check-in inventory. Without one, it is very difficult to demonstrate what was pre-existing and what was not.
  • Disproportionate remedies. Claims must reflect the actual, reasonable cost of addressing the specific loss. For example, adjudicators will often reduce or reject claims for full room redecoration when only a few scuffs are present, or for a new carpet where professional cleaning would be enough. If a repair is sufficient, a replacement will not be awarded.

How adjudicators assess claims

Three factors are central to how deductions are assessed:

  • Evidence of original condition. Without a clear check-in inventory which is signed, dated, and supported by photographs, it is very difficult to establish what has changed during the tenancy. Adjudicators cannot award deductions that cannot be evidenced.
  • Age and expected lifespan. Adjudicators consider the age and quality of items at the start of the tenancy and how much useful life remained. Adjudicators should provide indicative lifespans for carpets, decoration, white goods, and furniture useful when calculating proportionate claims.
  • Proportionality. The proposed remedy must match the actual loss. Quotes and invoices should accompany financial claims, and where possible, more than one quote should be obtained for larger works.

Key takeaways about tenancy deposit deductions

  • Deposits are the tenant's money, held as security against specific, evidenced losses and not a general end-of-tenancy fund.
  • Claimable deductions include unpaid rent, damage beyond fair wear and tear, cleaning where the property is returned in a worse condition than at check-in, redecoration, and outstanding contractual obligations.
  • Non-claimable deductions include fair wear and tear, betterment, pre-existing damage, disproportionate remedies, and general maintenance.
  • Evidence is everything. A signed, dated, photographic check-in inventory is the foundation of any successful claim.
  • Claims must be proportionate to the actual loss and adjudicators will reduce awards where the proposed remedy goes beyond what is reasonable.

We hope this article was helpful. For more information from TDS Group, please visit their CPD Member Directory page. Alternatively, you can go to the CPD Industry Hubs for more articles, courses and events relevant to your Continuing Professional Development requirements.

REFERENCES

(1) Housing Act 2004: https://www.legislation.gov.uk/ukpga/2004/34/section/3

(2) https://www.gov.uk/tenancy-deposit-protection

(3) https://www.gov.uk/government/publications/the-renters-rights-act-information-sheet-2026