Return of deposit fight after Section 8 and Money Order?

Send this to him ASAP
[Your Name & Address]
[Date]
By Email / Via Case Worker
Dear [Tenant’s Name],
Re: Your letter dated [●] – Deposit Compensation Demand
I acknowledge receipt of your letter in which you allege that the tenancy deposit taken in respect of [property address] was not protected within the statutory timeframe and that you intend to seek compensation.
For the avoidance of doubt:
I have already obtained a possession order and a money judgment of £4,500 against you for rent arrears and associated costs.
I have also incurred significant further costs in cleaning, repairs and removal of abandoned belongings, which exceed the value of the deposit.
Any claim you wish to bring in relation to the deposit must be issued formally through the County Court under the Housing Act 2004. Informal demands for payment will not be entertained.
Should you choose to issue proceedings, I will of course file a defence and place before the court:
The rent arrears judgment already made against you;
All supporting invoices for remedial works and losses;
Evidence of your conduct throughout the tenancy.
In those circumstances, if the court finds that a penalty is due, I will invite it to award the statutory minimum (1x the deposit) given the substantial sums you already owe and the prejudice suffered by me as landlord.
Unless and until a court determines otherwise, I do not accept liability to pay you any sum.
Yours sincerely,
[Your Name]

AND IF HE FILES, HERE IS YOUR DEFENCE DOCUMENT

IN THE COUNTY COURT

Claim No: [●]
Between:
[Tenant’s Full Name] (Claimant)
and
[Your Full Name] (Defendant)

DEFENCE

The Defendant is the former landlord of the property known as [full property address] (“the Property”).

The Claimant occupied the Property under an assured shorthold tenancy commencing on [date tenancy began]. A deposit of £[amount] was paid by the Claimant at the start of the tenancy.

The tenancy ended on [date] and the Claimant was evicted following a possession order made under section 8 of the Housing Act 1988. The Court also made a money judgment for £4,500 in the Defendant’s favour in respect of rent arrears.

The Defendant admits that the deposit was not protected within the statutory timeframe under section 213 Housing Act 2004.

However, the Claimant’s conduct as tenant caused the Defendant to suffer significant losses, including:
a. Rent arrears of £4,500 (subject of the court judgment already obtained);
b. Substantial additional costs for cleaning, disposal of abandoned belongings, and repairs to damaged fixtures (exceeding the deposit amount).

The Housing Act 2004 provides that where a deposit has not been protected, the court may order the landlord to pay the tenant a sum equivalent to between 1 and 3 times the deposit (section 214(4)). This is a discretionary remedy.

In exercising that discretion, the court should take account of all the circumstances of the case. In particular:

The Claimant was not prejudiced in the tenancy by the deposit issue, but the Defendant has suffered very substantial financial loss due to the Claimant’s behaviour.

The Claimant already owes the Defendant significant sums pursuant to a county court judgment.

Accordingly, if the Court is minded to make an award under section 214, the Defendant respectfully submits that any award should be limited to the statutory minimum of one times the deposit, and that such sum should be set off against the sums already owed by the Claimant to the Defendant.

The Defendant therefore denies that the Claimant is entitled to the relief claimed, save as may be ordered at the Court’s discretion under section 214 Housing Act 2004.

STATEMENT OF TRUTH
I believe that the facts stated in this Defence are true.

Signed: _______________________
Name: [Your Name]
Date: [Insert Date]

I would avoid going to court at all costs. The deposit protection legislation is strict liability
therefore any mitigation you offer is only about the scale of the penalty, (between 1x and 3x the deposit). Id expect about 2x in the circumstances you describe, but If the tenant uses a conditional fee lawyer then when the court also awards you all the legal costs, including the lawyers bonus, it will probably far exceed the £4500 the tenant owes.

if the deposit was lodged with any of the legal holding companies. shouldn’t they have the date the funds were lodged with them online? Also, can you consult bank statements to see when the deposit was received and when you paid it over? The banks will still have your statements available online as they have to keep them for 6 years.
And best of luck .

Reply to the comment left by Paul McCarthy at 09/09/2025 – 11:32
Thank you Paul. Will do it immediately.

Reply to the comment left by Sally Robinson at 09/09/2025 – 16:29
I have all those details plus emails saying how he cant pay his deposit for some months.

Reply to the comment left by Helen Quinn at 09/09/2025 – 18:59
Wait, what? So you let the property and agreed with the tenant that it was OK to pay the deposit after the tenancy started with their agreement or by their request, and you have proof?
If thats the case then send them a copy of their request and your agreement as such.
The question then is dis you protect it within 30 days of receiving it? If the answer is yes then this smells like a set up and an abuse of process by the ex tenant.

Reply to the comment left by Paddy O’Dawes at 09/09/2025 – 20:08
No, unfortunately I didn’t protect it as soon as I recieved it. My bad!

Reply to the comment left by Helen Quinn at 09/09/2025 – 20:19
I assume the protection of deposit was over 30 days post receipt then. Shame
However call it my cynical mind but this appears to be a method of pulling this strategy regardless eventually.
Convince landlord to take a late deposit after tenancy starts
Risk it that there’s no record of the agreement taken or, if verbally then you already know
When leaving the property immediately make a challenge with a LL who knows the potential cost of defence