The short answer
In England and Wales, a protected deposit does not become the landlord's just because the former tenant can't be found, and no law says it becomes the landlord's after a set time. With a custodial scheme, the landlord can only claim it at least 14 days after the tenancy ends, by sworn statutory declaration, and only for unpaid rent, other sums due under the tenancy, or damage beyond fair wear and tear. Scotland has passed a law treating deposits unclaimed for five years as unclaimed funds, but that section is not yet in force.
This article is general information, not legal or compliance advice. Before taking action on a particular deposit, check the current process with the scheme protecting it or an appropriate professional adviser.
Key facts
- In England, a deposit taken for an assured tenancy must be protected in a government-approved scheme within 30 days of receiving it. GOV.UK
- Once landlord and tenant agree how much is returned, the landlord must return it within 10 days; while they disagree, the deposit stays protected in the scheme. GOV.UK
- Under a custodial scheme, a landlord whose former tenant has not responded can apply for the deposit at least 14 days after the tenancy ends, supported by a statutory declaration. Housing Act 2004, Schedule 10, paragraph 4A
- The landlord can only claim for unpaid rent or other sums due under the tenancy, or for damage other than fair wear and tear. Housing Act 2004, Schedule 10, paragraph 4A
- In Wales, a deposit paid under an occupation contract must be dealt with in accordance with an authorised deposit scheme. Renting Homes (Wales) Act 2016, section 45
- Scotland's Housing (Scotland) Act 2025 would treat a deposit as unclaimed if no application for repayment is made within five years, but section 37 was not in force at Royal Assent and needs a commencement order. legislation.gov.uk
- The estimate of about £750 million in long-unreturned deposits comes from modelling by The Letting Partnership; there is no official consolidated figure. Landlord Today
Can a landlord claim the deposit if the tenant has disappeared?
Not simply by keeping it. In England and Wales, the Housing Act 2004 sets out a specific route for custodial schemes, where the scheme holds the money.
Under Schedule 10, paragraph 4A, the landlord can apply to the scheme for the deposit to be paid out when:
- at least 14 days have passed since the tenancy ended;
- the former tenant has not agreed how the deposit should be repaid, for example because they cannot be contacted or do not respond; and
- the landlord makes a statutory declaration, a sworn statement, supporting the application.
The claim is limited to unpaid rent or other sums due under the tenancy, and to damage to the property or its contents beyond fair wear and tear. The scheme notifies the tenant, and if the tenant disputes the claim, the landlord must agree to the scheme's dispute resolution service.
That route does not let a landlord keep a deposit simply because time has passed. If nothing is owed, the money remains the tenant's. Making a false statutory declaration is a criminal offence, so only claim what you can evidence.
If the deposit is in an insured scheme, the landlord or agent holds the money, but the scheme's rules still apply. Ask the scheme how it handles a tenant who cannot be contacted. In Wales, deposits under occupation contracts are protected under the Renting Homes (Wales) Act 2016, so check the scheme's process for Welsh contracts.
Why an unclaimed deposit can remain unresolved
The issue particularly affects self-managing landlords when a tenancy has ended but the former tenant is hard to reach. That could leave money in the deposit system without an agreed conclusion.
The Landlord Today report attributes an estimate of about £750 million to modelling by The Letting Partnership, using publicly available data. This is not an official total: the report says there is no official or consolidated record of the value of deposits that remain unreturned after tenancies have ended.
The reported estimate should therefore be understood as an attempt to highlight the possible scale of the issue, rather than evidence that a deposit scheme, agent or landlord has acted improperly.
England and Wales are different from Scotland
The same report draws a clear distinction between the jurisdictions:
- Scotland: the Housing (Scotland) Act 2025, section 37 would treat a deposit as unclaimed if no application for repayment is made within five years of the later of the tenancy ending or the rules taking effect. The funds could then be used for advice and support for private tenants, services promoting their interests and preventing homelessness among them. The section was not in force at Royal Assent and needs a commencement order.
- England and Wales: there is no legislative framework for dormant tenancy deposits. Only the claim routes run by the deposit schemes, described above, apply.
That distinction matters. England and Wales also have separate regimes: tenancies in England fall under the Housing Act 2004, while occupation contracts in Wales fall under the Renting Homes (Wales) Act 2016. A Scottish approach should not be treated as a rule that applies in England or Wales. Equally, discussion about whether England and Wales might adopt a clearer framework is a policy conversation, not a confirmed change in law.
What landlords can do now: keep the end-of-tenancy record clear
Where a deposit has not been resolved, a well-organised tenancy file can make it easier to understand what happened and to respond if contact is re-established. Keep the records connected to the tenancy, property and end-of-tenancy correspondence together, rather than relying on an old inbox or incomplete paper file.
For example, a landlord may want an orderly record of:
- the tenancy and property details;
- contact details held during the tenancy and any later correspondence;
- documents relating to the tenancy’s end; and
- records showing the status of any deposit-related communication.
These are practical record-keeping measures, not a substitute for the process set by the relevant deposit scheme. They also do not determine entitlement to the money or resolve a dispute.
If you prefer to manage those records in one place, see how Portfoliq works. Its landlord tools can be used to keep property, tenancy and document records organised as part of an end-of-tenancy workflow. You can also explore Portfoliq's landlord features when considering how to structure your records.
The key point to remember
In England and Wales, there is no statutory point at which an unclaimed tenancy deposit automatically becomes dormant or the landlord's. The only route is a claim through the scheme for sums actually owed, and the status of long-unclaimed deposits remains an unresolved policy issue.
For a live case, avoid making assumptions based on elapsed time alone. Retain the relevant records and use current information from the scheme protecting the deposit to understand the appropriate next step.
Sources
- Housing Act 2004, Schedule 10, paragraph 4A: custodial scheme claims where the tenant does not respond.
- GOV.UK: Tenancy deposit protection: protection, the 10-day return rule and disputes.
- Renting Homes (Wales) Act 2016, section 45: deposits under occupation contracts in Wales.
- Housing (Scotland) Act 2025, section 37: unclaimed tenancy deposits in Scotland (not yet in force).
- Landlord Today: “Unclaimed deposits – what happens to the hundreds of millions?” (4 September 2026). The report attributes the approximate £750 million estimate to The Letting Partnership’s modelling and states that there is no official consolidated figure.