How Long Does a Landlord Have to Return a Deposit? The Rules in England

Once landlord and tenant agree how much of the deposit the tenant gets back, GOV.UK guidance says it must be returned within 10 days. There is no deadline that runs from move-out day itself; the 10 day periods in Schedule 10 to the Housing Act 2004 are triggered by agreement, by the tenant's request, or by an adjudicator's or court's decision.

This article is for general information purposes only and does not constitute legal advice. Landlords should seek independent legal advice for their specific circumstances. It describes the position in England.

Is there a legal deadline for returning a deposit in England?

There is no fixed number of days counted from the end of the tenancy. GOV.UK guidance on tenancy deposit protection states: "Your landlord must return your deposit within 10 days of you both agreeing how much you'll get back."

The detailed rules sit in Schedule 10 to the Housing Act 2004, which sets how each type of scheme repays a deposit. Since 1 May 2026 these rules apply to almost every private assured tenancy, not only assured shorthold tenancies, following amendments made by the Renters' Rights Act 2025.

How does deposit return work in each type of scheme?

The process depends on whether the deposit is held in a custodial scheme or an insured scheme. The three authorised schemes are the Deposit Protection Service, mydeposits and the Tenancy Deposit Scheme, and some offer both models.

Custodial scheme, meaning a scheme that holds the deposit money itself. The landlord never holds the money, so repayment happens when both parties confirm the split to the scheme, or when an adjudicator or court decides it.

Insured scheme, meaning a scheme where the landlord or agent keeps the deposit and pays the scheme to insure it. Under paragraph 6 of Schedule 10, if the tenant asks for the deposit and it is not repaid within 10 days, the tenant can notify the scheme and say whether they consent to the scheme's dispute resolution service. The scheme then directs the landlord to pay the outstanding amount into its designated account within 10 days, and the landlord must comply with that direction under paragraph 6(9).

Shelter's legal guidance notes that a landlord who disputes the tenant's notice but does not say whether they agree to dispute resolution is treated as having consented to it. In practice, an insured scheme landlord who ignores a repayment request loses control of the money quickly.

What can a landlord deduct from a deposit?

A landlord can generally deduct only what the tenancy agreement allows and what can be evidenced as a genuine loss. The deposit itself is a permitted payment under Schedule 1 to the Tenant Fees Act 2019, capped at five weeks' rent where annual rent is below £50,000 and six weeks' rent where it is £50,000 or more.

The wider list of permitted and banned payments is covered in our Tenant Fees Act 2019 guide.

What counts as fair wear and tear?

Fair wear and tear, meaning deterioration from age and normal use, is not something a landlord can charge for. Schedule 10 itself frames a landlord's single party claim in a custodial scheme as one for unpaid rent or other sums due, or for damage beyond fair wear and tear.

mydeposits' guidance on wear and tear lists factors it considers, including the age and quality of the item, its expected life, the number of occupants, and the length of the tenancy. It also notes that wear and tear relates to condition, not to the standard of cleaning. Worn carpet in walkways and faded paint are typical wear and tear; burns, stains and large holes are typically damage.

Adjudicators also avoid betterment, meaning the landlord ending up with something better than they had. A landlord replacing a carpet that was already part way through its life will usually recover only a proportion of the cost. How that proportion is set depends on the evidence of the item's age and quality, and outcomes vary from case to case.

Worked example. A tenant moves out after three years and a carpet has a burn mark. The landlord's invoice for replacement is £800. Evidence shows the carpet was fitted four years before the tenancy ended and the landlord assumes an eight year useful life. On that assumption, half its life remained, so a claim of around £400 is more likely to be treated as proportionate than £800. The lifespan figure is the landlord's assumption, and an adjudicator may take a different view; mydeposits, for example, says its approach to carpet life starts at five years, which would reduce the award further.

What if the landlord and tenant cannot agree?

If the parties cannot agree, the deposit stays protected until the dispute is resolved, either through the scheme's free alternative dispute resolution service or through the county court. GOV.UK guidance confirms the deposit remains protected "until the issue is sorted out."

The Deposit Protection Service's published estimate of dispute timescales gives a sense of timing for a custodial deposit:

1. Both parties must agree to use the dispute resolution service; if either declines, the matter goes to court.
2. Each party has 14 calendar days to submit evidence.
3. After a pre-adjudication check of the evidence (normally around seven days), the case goes to an adjudicator. The DPS aims to resolve most disputes within 15 days of the adjudicator receiving the case, so a decision typically arrives around six weeks after the dispute starts. The DPS describes these timings as estimates.
4. Payment then takes a further 3 to 5 working days.

Each scheme sets its own time limit for raising a dispute, so landlords are advised to check their scheme's rules rather than assume a period. How adjudicators weigh evidence is explained in our guide to the deposit adjudication process.

What if the tenant does not respond at all?

Where the deposit is in a custodial scheme, paragraph 4A of Schedule 10 lets a landlord apply to the scheme alone. The conditions are that at least 14 days have passed since the tenancy ended, no agreement has been reached, and the tenant either cannot be contacted or has not responded within 14 days of receiving a written notice sent after the tenancy ended. The claim must relate to rent or other sums due under the tenancy, or to damage beyond fair wear and tear.

The application must be supported by a statutory declaration. Under paragraph 4C, the scheme sends the tenant a copy and gives them 14 days to respond. If the tenant does not respond, the scheme pays the amount claimed to the landlord within 10 days after that period ends. If the tenant disputes it, the claim moves to dispute resolution or court.

Paragraph 4B gives tenants the same route where a landlord goes silent. Either way, a dated written request with evidence that it was sent and received is the starting point, so keeping proof of what was sent and when matters.

Does returning the deposit affect possession or penalty claims?

Returning the deposit can matter beyond the end of the tenancy. Under section 215 of the Housing Act 2004, as replaced by the Renters' Rights Act 2025, a court cannot make a possession order on most grounds where deposit requirements were not met. Returning the deposit in full, or with deductions the tenant agrees, is one of the routes that lifts that bar under section 215(5)(a).

Returning the deposit does not remove a tenant's claim under section 214 for a deposit that was not protected on time. Those consequences are explained in our article on what happens when a deposit is not protected.

End of tenancy deposit checklist

1. Confirm whether the deposit sits in a custodial or an insured scheme, and with which scheme.
2. Carry out a check-out inspection against the check-in inventory, with dated photographs.
3. Send the tenant a written list of proposed deductions, each backed by evidence and a quote or invoice.
4. Allow for fair wear and tear and avoid betterment when pricing replacements.
5. Once the split is agreed, repay or confirm it to the scheme within 10 days.
6. Once at least 14 days have passed since the tenancy ended, if the tenant cannot be contacted or has not responded within 14 days of receiving a written notice sent after the tenancy ended, consider the single party route (custodial) or the scheme's dispute process.
7. Keep the deposit file, including correspondence, for at least six years.

Learning the full deposit cycle: the LLCR Academy course

LLCR Academy's course Tenancy Deposit Compliance for Landlords (England) covers the deposit from receipt to return, including weaker deductions where evidence is missing and how to build a deposit evidence file. It is general training rather than legal advice and covers England only.

Keeping the deposit evidence together

Most deposit disputes are decided on paperwork: the inventory, the check-out report, the photographs and the correspondence. The LLCR platform is designed to hold these against each property, with a dated record of what was sent to the tenant and when, so the evidence is ready if the scheme or a court asks for it. LLCR is free for one property.

Unsure whether your deposit paperwork would stand up at the end of a tenancy? The free LLCR compliance checker takes a few minutes and shows where the gaps are.