Landlord keeping deposit for reported mould

Legal position:
Under the law of England and Wales, specifically the Housing Act 2004, your tenancy deposit must be protected in one of the government-approved schemes (such as the Deposit Protection Service, MyDeposits, or the Tenancy Deposit Scheme). At the end of the tenancy, the landlord can only make deductions from the deposit for specific reasons, such as unpaid rent, damage to the property beyond fair wear and tear, or cleaning costs if the property is left in a worse condition than at the start. However, deductions must be reasonable and supported by evidence, such as check-in and check-out inventories.

Regarding mould or damp, the Landlord and Tenant Act 1985 places responsibility on the landlord to keep the structure and exterior of the property in repair, including addressing issues like penetrating damp or rising damp that arise from disrepair. If you reported the mould or damp during the tenancy and it was due to a structural issue (for example, a leaking roof or faulty plumbing), the landlord should have addressed it promptly under their repairing obligations. In such cases, the landlord cannot legitimately deduct costs from your deposit for damage caused by their own failure to maintain the property, as this would not constitute tenant damage.

Conversely, if the mould or damp resulted from your actions or inaction (such as inadequate ventilation, drying clothes indoors without proper airflow, or failing to heat the property sufficiently), the landlord might have grounds to deduct reasonable costs for remediation, provided they can prove this with evidence. Recent guidance from the government, including the Homes (Fitness for Human Habitation) Act 2018, emphasises that landlords must ensure properties are free from hazards like damp and mould, but tenants also have a duty to use the property in a tenant-like manner.

The exact position depends on factors such as the cause of the damp (e.g., condensation vs. structural), the type of tenancy (assured shorthold is most common), the dates of reporting and any responses, and any evidence like emails, photos, or repair requests. Without these details, it is not possible to determine definitively whether the deduction is lawful.

Practical next steps:
If your landlord proposes or has already deducted from the deposit for mould or damp, consider the following in sequence to resolve the matter efficiently, bearing in mind costs, evidence requirements, and the potential stress of escalation:

1. Review the tenancy agreement, check-in inventory, and any check-out report to compare the property's condition at the start and end. Gather your evidence of reporting the issue, such as dated correspondence or photos.

2. Contact the deposit protection scheme holding your deposit (your landlord should have provided details within 30 days of receiving it). Explain your dispute in writing, providing evidence that the mould was reported and not caused by you. The schemes offer free alternative dispute resolution (ADR) services, which are binding if both parties agree to use them – this is often quicker and cheaper than court.

3. If the scheme's ADR does not resolve it or if the deposit is not protected (which is unlawful and could entitle you to compensation of 1-3 times the deposit via the county court), send a formal letter to the landlord disputing the deduction, referencing the relevant laws and your evidence. Government templates are available on sites like Shelter or Citizens Advice for this.

4. If informal steps fail, you could escalate to the Property Ombudsman or similar body if your landlord is registered, or consider a small claims action in the county court for return of the deposit. However, court involves fees (recoverable if you win), potential delays of several months, and the need for strong evidence; it is often not the most practical first option unless the amount is significant.

Recent changes, such as those under the Renters (Reform) Bill (currently progressing through Parliament as of 2023), may strengthen tenant protections against issues like damp, but these do not yet apply retrospectively. If the property is in Scotland, Northern Ireland, or elsewhere, note that this advice is specific to England and Wales; you may wish to consult a specialist for that jurisdiction.