Tenant Deposit Failure Claim

Where a deposit is paid in respect of an assured shorthold tenancy, the landlord (or any person acting on their behalf) must arrange for it to be protected in accordance with an authorised scheme. The landlord must also give the tenant prescribed information about the scheme. The prescribed information must be accompanied by a certificate, signed by the landlord, confirming the accuracy of the information. A failure to provide meet these requirements may result (amongst other things) in the tenant obtaining an order that the landlord pay damages in a sum not less than the deposit paid and not more than three times the amount of the deposit.

In the case of Lowe v Governors of Sutton’s Hospital in Charterhouse [2025] EWCA Civ 857 Asplin, Mr Lowe was the assured shorthold tenant of the defendant landlord. In 2010 he paid a deposit in connection with the letting. That deposit was placed in an authorised tenancy deposit scheme and the landlord provided Mr Lowe with the prescribed information. There was an error in the information in that it cross-referred to the wrong clause of the tenancy agreement as identifying the circumstances in which the deposit could be retained (in whole or part). The certificate was not signed by the landlord but the covering letter was.

Mr Lowe contended that the erroneous cross-reference and/or the failure to sign the certificate meant that the landlord had not complied with the requirements. The landlord denied that there had been any breach of any obligation. The trial judge and High Court found for the landlord.

The Court of Appeal dismissed an appeal and continued finding for the landlord. The question was how a reasonable recipient would have understood the information which the landlord had provided. The erroneous cross-reference to the term of the tenancy would not have confused a reasonable reader who would easily have been able to find the correct term in the tenancy. The signature on the covering letter was sufficient to show that the landlord was affirming the documents which were enclosed with the letter, including the certificate.

For assistance in tenant eviction and surrounding law, please contact Oliver Kew at o.kew@hewetts.co.uk

Published on 22/09/2025