Deposit Return Letter

Landlord Handbook
www.landlordhandbook.co.uk
Letter
Ref: LH-LT-003
Last updated: 15 March 2026
Printed: 8 October 2026

Deposit Return Letter

Letter explaining deposit deductions with itemised breakdown and evidence references

Landlord Handbook
Updated 15 March 2026
England & Wales
Annual Access

10-Day Deadline

You must contact the tenant within 10 days of the tenancy ending to either return the deposit in full or provide an itemised breakdown of deductions with supporting evidence. Failure to do so can result in penalties.

[Landlord/Agent name and address]

[Date]

Dear [Tenant's name(s)],

Re: [Property address] — Deposit Return / Deductions

I am writing following the end of your tenancy on [date] and the check-out inspection carried out on [date]. Your deposit of £[total deposit amount] was held with [deposit scheme name], reference [reference number].

Option A — Full Return (no deductions)

I am pleased to confirm that no deductions are being made from your deposit. The full amount of £[amount] will be returned to you within [X] days. Please confirm your bank details: sort code [XX-XX-XX], account number [XXXXXXXX].

Option B — Deductions Being Made

Following the check-out inspection and comparison with the original inventory, I am proposing the following deductions from your deposit:

Proposed Deductions

  • Cleaning: £[amount]
    Reason: [e.g., Professional clean required — oven, bathroom, carpets not cleaned to move-in standard. See photos ref: C1–C4]
  • Damage — [item]: £[amount]
    Reason: [e.g., Hole in bedroom wall not present at check-in. See photos ref: D1–D2 and contractor quote ref: Q1]
  • Outstanding rent: £[amount]
    Reason: [e.g., Rent for [month] remains unpaid]
  • [Other deduction]: £[amount]
    Reason: [description and evidence reference]

Summary

  • Total deposit held: £[amount]
  • Total proposed deductions: £[amount]
  • Amount to be returned to you: £[amount]

Evidence

Supporting evidence (check-in photos, check-out photos, contractor quotes, and invoices) is attached to this letter / available on request.

Your Right to Dispute

If you disagree with any of the proposed deductions, you have the right to raise a dispute with [deposit scheme name]'s free Alternative Dispute Resolution (ADR) service. Details of how to do this are available on the scheme's website.

Please respond within 14 days to confirm whether you accept the proposed deductions or wish to raise a dispute. If I do not hear from you, I will proceed on the basis that the deductions are accepted.

Yours sincerely,

[Landlord/Agent name]
[Contact details]

Legal Note: Deductions must be reasonable and supported by evidence. You cannot deduct for fair wear and tear. Keep all photos, invoices, and correspondence in case of an ADR dispute.

Disclaimer

Guidance only. Landlord Handbook provides practical information to help landlords understand their responsibilities. It is not legal or financial advice. Always check the latest GOV.UK guidance and seek professional advice where appropriate.

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