Deposit Return & Deduction Letter

An end-of-tenancy deposit letter for landlords in England. Sets out the deposit held, the scheme it is protected in, each proposed deduction with evidence, and the balance to be returned — the itemised breakdown a deposit scheme adjudicator will expect.

*Itemised statement of what is being returned and why anything is withheld*

Last reviewed: 2026-09-28. Next review: 2026-12-28.

Deposit return statement

Itemised deductions

List every deduction separately. Attach the invoice or quote for each line.

Wording you can use

Dear [tenant name],

Now that the tenancy at [address] has ended on [date], I am writing to set out how your deposit of £[amount], protected in [scheme name] under reference [ref], will be dealt with.

I propose the deductions listed in the attached itemised statement, totalling £[total]. Each is supported by the evidence noted. I have taken fair wear and tear into account and I am not claiming for anything attributable to normal use over the length of the tenancy.

The balance of £[balance] will be returned to you at the bank details you provided. If you disagree with any of the proposed deductions, please tell me within [number] days so we can try to resolve it. If we cannot agree, you can raise a free dispute with the deposit scheme, which will decide the matter.

Yours sincerely, [landlord / agent name]

What deductions are usually accepted

Unpaid rent and unpaid utility or council tax bills that were the tenant's responsibility.
Damage beyond fair wear and tear, evidenced against the check-in inventory.
Cleaning to return the property to the standard recorded at check-in.
Missing items listed on the inventory.
Rubbish removal or items left behind.

What is usually rejected

Fair wear and tear — normal deterioration from ordinary use over the length of the tenancy.
Betterment: charging the full cost of a new item to replace something old and worn.
Claims with no check-in inventory or dated photographs to compare against.
Round-sum or estimated figures with no invoice or quote.
Pre-existing damage that was already recorded at check-in.

Protection and the dispute route

Deposits taken for assured tenancies must be protected in a government-approved scheme, and the prescribed information given to the tenant, within 30 days of receipt (Housing Act 2004, s.213). Failure can lead to a claim under section 214 for between one and three times the deposit.

If you and the tenant cannot agree on deductions, each scheme offers a free alternative dispute resolution service. The adjudicator decides on the documents alone, so the quality of your inventory, photographs and invoices is what determines the outcome.

Good-practice notes

Send the statement promptly.
Where you and the tenant agree the figures, the scheme can release the funds quickly.
If there's a dispute, the deposit stays protected in the scheme until it's sorted out (GOV.UK).
Keep the check-in inventory, check-out report, dated photographs and invoices together as one bundle.
Apportion for age and expected life of an item rather than claiming the full replacement cost.

Important

This is a general template based on GOV.UK guidance and the Housing Act 2004. It is not legal advice. GOV.UK says the landlord must return the deposit within 10 days of both of you agreeing how much the tenant gets back.

Sources: - legislation.gov.uk — Housing Act 2004, section 213 (protection of tenancy deposits) — https://www.legislation.gov.uk/ukpga/2004/34/section/213 - legislation.gov.uk — Housing Act 2004, section 214 (proceedings relating to deposits) — https://www.legislation.gov.uk/ukpga/2004/34/section/214 - GOV.UK — Tenancy deposit protection — https://www.gov.uk/tenancy-deposit-protection - GOV.UK — Tenancy deposit protection: disputes and problems — https://www.gov.uk/tenancy-deposit-protection/disputes-and-problems