What Happens During Deposit Dispute Adjudication?

Alternative Dispute Resolution (ADR) is the free adjudication service offered by all three deposit protection schemes. It is the main way deposit disputes are resolved in England and Wales without going to court. Here is exactly what happens, step by step.

How ADR Is Initiated

Either the tenant or landlord can raise a dispute with the relevant scheme. Both parties must agree to use ADR — it is voluntary. This step comes after you have followed the earlier stages of the deposit dispute process. According to TDS, if one party refuses ADR, the dispute must go to county court instead. In practice, most landlords agree to ADR because it is free and avoids the cost and time of court proceedings.

Evidence Submission

Once ADR is initiated, both parties receive an evidence submission window — typically 14 days. The adjudicator will only consider evidence submitted during this period. DPS guidance emphasises that quality matters more than quantity: a focused evidence pack with dated photographs, the tenancy agreement, inventory reports, and relevant correspondence is far more effective than submitting hundreds of pages of unsorted documents. Our guide to proper inventory evidence covers exactly what to include.

What Adjudicators Look For

Adjudicators assess each deduction against three key questions: (1) Was there damage or loss beyond fair wear and tear? (2) Is the claimed cost reasonable and proportionate? (3) Has the landlord provided sufficient evidence to justify the deduction? The burden of proof falls on the landlord — it is the landlord who must prove the deduction is justified, not the tenant who must prove it is not. Shelter confirms that adjudicators apply this standard consistently across all three schemes.

The Decision

Decisions are issued in writing, typically within 28 days. The adjudicator can award all, some, or none of the disputed amount to either party. According to TDS statistics, the most common outcome is a split — the tenant receives some of the disputed money, the landlord retains some. Full awards in favour of tenants happen in approximately 25–30% of cases, while full awards in favour of landlords occur in around 15–20%.

After the Decision

ADR decisions are binding within the scheme. However, under the Arbitration Act 1996, you can challenge a decision in county court within 28 days if you believe there was a serious irregularity in the process. This is a high bar — you cannot simply appeal because you disagree with the outcome. Make sure you understand how deposit protection schemes work before starting the process.