Deposits
How long does a landlord have to return a deposit?
In England and Wales, a landlord must return a tenancy deposit within 10 days of the landlord and tenant agreeing how much will be returned. No separate legal deadline runs from the end of the tenancy itself, and a tenant cannot ask for the deposit back until the tenancy has ended. Where the two sides cannot agree on deductions, the disputed amount stays protected in the tenancy deposit scheme until the matter is resolved. The practical task for a landlord is therefore to reach agreement quickly, and with evidence, so the 10-day clock can start.
The 10-day rule starts when you agree the amount, not when the tenant moves out
The 10-day period is the most misread rule in deposit return. It does not begin when the tenant hands back the keys, and it does not begin when the tenant first asks for the money. It begins on the day the landlord and tenant agree how much of the deposit will be returned, and from that point the deposit, or the agreed portion of it, must be paid within 10 days (GOV.UK).
Before agreement is reached there is no fixed statutory countdown, but a landlord is expected to act without undue delay. That means carrying out the check-out inspection, comparing it against the signed inventory, and putting any proposed deductions to the tenant promptly. Holding the deposit while the tenant waits, with no figure proposed and no reason given, is the single most common trigger for a dispute and, in turn, for a compensation claim.
What a landlord can deduct from the deposit
A landlord can only deduct money from the deposit for genuine, evidenced loss caused by the tenant. The recognised grounds are narrow:
Unpaid rent or unpaid bills the tenant was contractually responsible for
Damage to the property or its contents beyond fair wear and tear
Cleaning needed to return the property to its condition at check-in
Missing or broken items recorded on the inventory
A landlord cannot deduct for fair wear and tear, and cannot use the deposit to put the property into a better state than it was in at the start of the tenancy. The full list of what does and does not qualify is set out in our guide to deposit deductions. Every deduction has to be justified against the evidence, which is why the check-out report and the original inventory carry so much weight.
Custodial and insured schemes return the money in different ways
How a landlord physically returns the deposit depends on whether it sits in a custodial or an insured scheme. In a custodial scheme the scheme itself has held the cash for the whole tenancy, so release is requested through the scheme and confirmed by both parties; if one side does not respond, the other can use the scheme's single-claim process. In an insured scheme the landlord has held the money throughout and pays the tenant directly within the 10 days, and if a dispute arises the landlord must send the disputed amount to the scheme to hold while it is resolved. The 10-day rule applies either way once the amount is agreed. The differences between the schemes are covered in our entry on the tenancy deposit scheme.
How to return a deposit cleanly: the operational sequence
A clean deposit return follows the same four steps every time.
Carry out the check-out inspection at the end of the tenancy and compare it directly against the signed check-in inventory.
Decide on any deductions and assemble the evidence behind each one: dated photographs, the inventory, receipts for work, and the rent record.
Put the proposed figure to the tenant in writing, with a short reason for each deduction.
Once the tenant agrees, release the deposit, or the agreed balance, within 10 days.
Across the self-managing landlords who run their tenancies on August, the deposits that come back without argument are almost always the ones where the check-in evidence was captured properly on day one. A deduction is only as strong as the record that supports it, and that record is made at the start of the tenancy, not at the end. Keeping the inventory, the check-in and check-out reports, the deposit certificate and the prescribed information together in one place is what makes a contested return defensible. August stores all of that tenancy documentation in one record per property, so the evidence is to hand the moment a tenant queries a deduction. You can see how that works on our document management page.
What to do when you cannot agree the deductions
If the landlord and tenant cannot agree, the scheme's free dispute resolution service decides the outcome, and the disputed money stays protected until it does. The adjudicator weighs the evidence on both sides, which in practice means the inventory, the check-out report, dated photographs and the correspondence between the parties. A tenant can usually raise a dispute once around 10 days have passed since requesting the deposit, and the window to use the scheme's resolution service is typically three months from the end of the tenancy, though the exact rules vary between schemes. This article covers the return process itself; for the contested path in detail, see how to handle a deposit dispute fairly.
The legal position in 2026
Tenancy deposit protection is governed by sections 213 to 215 of the Housing Act 2004. A landlord must protect the deposit in a government-approved scheme within 30 days of receiving it and serve the prescribed information in the same period, and at the end of the tenancy must return the deposit within 10 days of agreeing the amount (GOV.UK). A landlord who fails to protect a deposit, or fails to serve the prescribed information, can be ordered by a court to pay the tenant between one and three times the deposit under section 214, separately from returning the deposit itself.
Older guidance often states that a landlord who has not protected a deposit cannot serve a Section 21 notice. The Renters' Rights Act 2025 abolished Section 21 from 1 May 2026, so that specific bar no longer exists. The compensation exposure under section 214 remains in full, and a landlord seeking possession on other grounds must still be able to show the deposit was handled correctly. This position is correct as of June 2026.
Frequently asked questions
Can a tenant ask for the deposit back before the tenancy ends?
No. The right to request the deposit back arises once the tenancy has ended. A tenant cannot require a landlord to return the deposit while the tenancy is still running.
Is there a deadline for the landlord to propose deductions?
There is no fixed statutory deadline by which a landlord must propose deductions, but the law expects the landlord to act without undue delay. If the landlord has not responded, a tenant can usually raise a dispute through the scheme around 10 days after requesting the deposit back.
What happens if the deposit was never protected?
That is a separate and more serious problem than a slow return. The tenant can apply to court for compensation of one to three times the deposit, and the landlord should take advice before doing anything else. Our entries on tenancy deposit rules and the prescribed information explain the compliance position.
How long does scheme dispute resolution take?
It varies, but several weeks is normal once both sides have submitted their evidence. The scheme holds the disputed amount throughout, so neither party is out of pocket while the adjudicator decides. Landlords who keep their tenancy records organised from the start tend to resolve these faster; you can start for free and keep every deposit document in one place.
Author
August Team
The August editorial team lives and breathes rental property. They work closely with a panel of experienced landlords and industry partners across the UK, turning real-world portfolio and tenancy experience into clear, practical guidance for small landlords.
