Adjudication

Adjudication is a formal, paper-based process used by government-approved tenancy deposit protection schemes to resolve disputes between landlords and tenants over deposit deductions at the end of a tenancy. It is provided free of charge to both parties and is governed by the deposit protection framework established under the Housing Act 2004. An independent adjudicator reviews evidence submitted by both sides and issues a binding written decision on how the disputed amount of the deposit should be allocated, without either party needing to attend a hearing or instruct a solicitor.

Adjudication is one form of alternative dispute resolution (ADR) available in the private rented sector, sitting alongside mediation and arbitration as a way of resolving housing disputes without litigation. In deposit disputes, adjudication is the standard mechanism: all three government-approved tenancy deposit schemes in England and Wales, including DPS, TDS, and myDeposits, use it as their dispute resolution service.

When adjudication applies

Either party, landlord or tenant, can raise a deposit dispute with the relevant scheme once the tenancy has ended and the parties cannot agree on how the deposit should be returned. The scheme will usually require the parties to have made a reasonable attempt to resolve the matter between themselves first. A dispute must typically be raised within 90 days of the end of the tenancy, though each scheme has its own deadlines and landlords and tenants should check the rules of their specific scheme promptly.

What the adjudicator considers

The adjudicator reviews documentary evidence only, they do not visit the property or hold a hearing. The standard of proof is the balance of probabilities: the adjudicator asks whether it is more likely than not that the claimed loss or damage is attributable to the tenant. Crucially, the burden of proof lies with the landlord. The deposit is the tenant's money held as security, and a landlord must prove their deduction is legitimate, the tenant has no obligation to disprove the claim.

The most common basis for disputed deductions is damage beyond fair wear and tear, the gradual deterioration of a property through ordinary use that tenants are not expected to pay for. An adjudicator will assess the age and condition of items at the start of the tenancy alongside the reported damage at the end. A claim for full carpet replacement on a carpet that was already five years old at the start of a two-year tenancy is unlikely to succeed on that basis alone.

The most important evidence categories are: a signed check-in inventory establishing the property's condition at the start of the tenancy; a check-out report documenting its condition at the end; dated photographs; the tenancy agreement; contractor quotes or invoices; and correspondence between the parties about the issue during the tenancy. Landlords who lack a signed inventory face significant difficulty proving any deduction was justified.

From working with self-managing landlords across the UK, we see the same pattern repeatedly in failed adjudication claims. Landlords submit photographs without a signed baseline inventory, claim for items at replacement cost rather than depreciated value, or include charges that are not permitted under the tenancy agreement. The adjudicator can only award what the evidence supports.

Timeline and outcome

Once both parties have submitted their evidence, adjudicators typically return a decision within 28 days. The decision is binding on the scheme, which releases the deposit in line with it. Neither party can appeal the decision through the scheme itself, though either party can pursue the matter through the small claims court if they believe the adjudicator made an error of law or of fact. In practice, court challenges are rare.

Adjudication compared with going to court

Court proceedings give either party more scope to challenge evidence and present arguments, but they take longer, cost more, and require a formal claim process. Adjudication is designed to be fast, free, and accessible. For most deposit disputes involving amounts within the deposit cap (currently five weeks' rent), adjudication is the appropriate route. Court action is more likely to be suitable where the dispute involves a sum that exceeds the deposit, or where there are allegations of deliberate damage or fraud that require more thorough examination.

For a step-by-step guide to preparing evidence for a deposit dispute, including what adjudicators expect from check-in reports, photographs, and contractor quotes, see our guide to handling tenancy deposit disputes.

Frequently asked questions

Is deposit adjudication free? 

Yes. All three government-approved tenancy deposit schemes in England and Wales, including DPS, TDS, and myDeposits, offer adjudication free of charge to both landlords and tenants. There are no fees to raise a dispute or to receive a decision.

Can a landlord appeal an adjudication decision? 

There is no internal appeal route through the scheme. If either party believes the adjudicator made a factual or legal error, they can challenge the outcome in the small claims court, but this is uncommon, as adjudication decisions are generally treated as final and binding.

What happens to the deposit while a dispute is being adjudicated? 

In a custodial scheme, the deposit remains held by the scheme until the adjudicator's decision is issued. In an insured scheme, the landlord is typically required to pay the disputed amount to the scheme for the duration of the process. Once a decision is made, the scheme releases funds in accordance with the outcome.