Deposit deduction proposal

Itemise every deduction with a cost and evidence before you go near adjudication.

Deposits · Updated 2 August 2026

Overview

Adjudicators decide on evidence, not assertion. A deduction proposal that lists each item, the inventory reference, the photo and the invoice is far more likely to be upheld.

Why it matters

Most landlords who lose deposit disputes lose on evidence, not on principle — no check-in inventory, no dated photos, or a claim for betterment rather than repair.

Legal requirements

Deductions must reflect actual loss, not a round number.
Fair wear and tear cannot be charged for.
You cannot claim the cost of a brand new item to replace an old one — apportion for age.
The undisputed part of the deposit should be returned promptly.

Common mistakes

Claiming full replacement cost for a five-year-old carpet.
Charging for cleaning without a check-in standard to compare against.
Delaying the return of the undisputed balance while arguing about the rest.

Practical guidance

Return the undisputed amount immediately and say so in the letter.
Attach the check-in and check-out photos side by side.
Give the tenant a genuine window to respond before escalating.

The template

Replace everything in [SQUARE BRACKETS] with your own details before use.

PROPOSED DEPOSIT DEDUCTIONS

To: [TENANT NAME(S)]
Property: [FULL ADDRESS]
Tenancy ended: [DATE]
Deposit held: GBP [AMOUNT] in [SCHEME NAME], ref [ID]
Date: [DATE]

Dear [TENANT NAME],

Thank you for returning the keys. Below is my proposal for the deposit.

ITEMISED DEDUCTIONS
1. Item: [e.g. carpet, living room]
   Inventory reference: [SECTION / PHOTO]
   Condition at check-in: [DESCRIPTION]
   Condition at check-out: [DESCRIPTION]
   Cost claimed: GBP [AMOUNT]
   Evidence attached: [INVOICE / QUOTE / PHOTOS]
   Apportionment for age and fair wear: [e.g. 40% deducted for age]

2. Item: [ ... repeat as needed ... ]

SUMMARY
Deposit held:        GBP [AMOUNT]
Total deductions:    GBP [AMOUNT]
Amount returning:    GBP [AMOUNT]

I have today asked the scheme to release the undisputed amount of GBP [AMOUNT] to you, regardless of the outcome of anything above.

Please reply by [DATE, AT LEAST 14 DAYS] to confirm whether you agree. If you do not agree, either of us can use the scheme''s free dispute service and an independent adjudicator will decide.

Kind regards,
[LANDLORD NAME]

This template is general information for UK landlords and letting agents, not legal advice. Rules differ across England, Wales, Scotland and Northern Ireland — check your local requirements or take advice before relying on it.