Property Condition Report (UK)

A Property Condition Report in the United Kingdom — also known as a check-in inventory or schedule of condition — is a detailed written record of the state of a residential rental property and its contents at the start of a tenancy in England and Wales. Prepared at check-in and repeated at check-out, it provides the factual baseline that landlords, tenants, and tenancy deposit scheme adjudicators rely on when assessing whether deposit deductions are justified at the end of a tenancy.

The legal framework for property condition reports in England sits within the tenancy deposit protection regime introduced by the Housing Act 2004, Part 6. Under sections 212 to 215 of that Act, landlords who take a deposit for an assured shorthold tenancy must protect it in one of three government-approved schemes — the Tenancy Deposit Scheme (TDS), the Deposit Protection Service (DPS), or mydeposits — within 30 days and must serve the prescribed information on the tenant. Deposit disputes that cannot be resolved between the parties are referred to the scheme's adjudication service, which makes a binding decision based on documentary evidence including the check-in and check-out condition reports.

The repairing obligations framework under section 11 of the Landlord and Tenant Act 1985 requires landlords of residential properties let for less than seven years to keep the structure, exterior, and installations for the supply of water, gas, electricity, and sanitation in repair. A property condition report prepared at the start of the tenancy documents the pre-existing condition of the property and helps distinguish between disrepair that was the landlord's responsibility from the outset and damage caused by the tenant during the tenancy.

The Tenant Fees Act 2019 prohibits landlords and letting agents in England from charging tenants for check-in inventories, check-out reports, or any other services relating to the tenancy beyond a capped holding deposit and the rent itself. The cost of preparing the condition report must be borne by the landlord or agent. Under the Housing Act 1988, section 21, a landlord cannot serve a valid no-fault eviction notice unless the deposit has been properly protected and the prescribed information served — a process in which a properly completed check-in inventory is a best-practice supporting document.

The Homes (Fitness for Human Habitation) Act 2018, which amended the Landlord and Tenant Act 1985 by inserting sections 9A to 9C, requires landlords to keep residential properties free from hazards assessed under the Housing Health and Safety Rating System (HHSRS) introduced by Part 1 of the Housing Act 2004. A property condition report prepared at check-in provides a contemporaneous record of any pre-existing HHSRS hazards — such as damp, mould, or electrical deficiencies — that will help the landlord distinguish between conditions that pre-dated the tenancy and those that arose during it. The Deregulation Act 2015 amended section 21 of the Housing Act 1988 to prevent landlords from serving a no-fault eviction notice in retaliation for a tenant's complaint about the condition of the property, making it important for landlords to document their proactive maintenance and inspection regime. The Renters (Reform) Act 2024 further strengthens tenants' rights regarding property conditions and the HHSRS regime. The forms-legal.com Property Condition Report (UK) template covers the check-in and check-out process for residential tenancies in England and Wales and reflects the requirements of the Housing Act 2004, the Tenant Fees Act 2019, section 11 of the Landlord and Tenant Act 1985, and the Homes (Fitness for Human Habitation) Act 2018.

A Property Condition Report should be prepared at the commencement of every residential tenancy in England and Wales where a tenancy deposit has been taken, and ideally for all tenancies whether or not a deposit is held. The document is needed in the following situations.

At the start of an assured shorthold tenancy under the Housing Act 1988, the check-in inventory creates the evidential baseline for any deposit claim at check-out. Tenancy deposit scheme adjudicators at the TDS, DPS, and mydeposits consistently award deductions only where the landlord can evidence the condition of the property at the start of the tenancy. Without a signed inventory, the landlord's deposit claim will almost certainly fail.

At the end of a tenancy at check-out, the condition report is used to compare the property's current state against the check-in record. Differences that exceed fair wear and tear — such as damage, staining, or items missing beyond normal deterioration — may justify deposit deductions. The amount of fair wear and tear that must be accepted increases with the length of the tenancy and the age of the items at check-in.

Mid-tenancy inspections should also be recorded using a condition report format. Landlords in England are entitled to carry out periodic inspections (typically quarterly or six-monthly) on reasonable notice under the terms of the tenancy agreement. Documenting the property's condition at each visit creates a contemporaneous record that is valuable if a dispute later arises about when damage occurred.

For houses in multiple occupation (HMOs) licensed under the Housing Act 2004, the condition of shared facilities and individual rooms must be documented to comply with the HMO licensing conditions set by the local housing authority. The condition report provides evidence that the property met the required standard at the start of each occupancy.

Commercial property let under a full repairing and insuring (FRI) lease should also be documented in a schedule of condition at the commencement of the lease, so that the tenant's repairing obligation under the lease is limited to keeping the property in no worse condition than shown in the schedule. Without a schedule of condition, the tenant may be liable to restore the property to a much higher standard than it was in when they took possession.

A Property Condition Report for use in England and Wales should cover the following key elements to be effective as evidence in a tenancy deposit dispute or court proceedings.

The property details section states the full address of the property, the type of property (house, flat, HMO room), the tenancy start date, and the names of the landlord or agent and each adult tenant.

The room-by-room condition assessment is the core of the report. Each room should be described individually — typically the entrance hall, living room, kitchen, each bedroom, bathroom, and any outbuildings or garden areas. For each room, the report should record the condition of the walls, ceiling, floor, windows, doors, and fitted items, using a condition rating such as excellent, good, fair, or poor, with a description of any defects, marks, or damage noted.

The fixtures, fittings, and appliances section lists all items included in the let — furniture, white goods, curtains, carpets, light fittings — with the condition and cleanliness of each recorded individually. For furnished or part-furnished properties, this section is particularly detailed.

Photographic evidence should be referenced in the body of the report and attached as a schedule. Photographs should be dated and geotagged where possible, and should clearly show the condition of items described. Most tenancy deposit scheme adjudicators give significant weight to photographic evidence.

The meter readings section records gas, electricity, and water meter readings at check-in so that utility bills can be accurately allocated between the departing and incoming tenant.

The keys schedule lists every key, fob, and access card provided to the tenant at check-in, with the number of each type. Keys not returned at check-out may justify a deduction from the deposit for lock replacement.

The signatures section requires both the landlord or agent and each adult tenant to sign and date the report at check-in, confirming that the recorded condition is accurate. A tenant who signs the check-in inventory without objection is generally taken to have accepted its accuracy. Where the tenant refuses to sign, the landlord should note the refusal and the date, and retain the unsigned report as evidence.

The HHSRS hazard assessment note should flag any Housing Health and Safety Rating System hazards identified under Part 1 of the Housing Act 2004, such as excess cold, damp and mould growth, or electrical hazards. Recording these at check-in allows the landlord to demonstrate awareness of the issue and any remedial action taken, which is relevant to any defence under the Homes (Fitness for Human Habitation) Act 2018 if the tenant later brings a claim in the County Court under section 9A of the Landlord and Tenant Act 1985.

The HMO compliance section applies where the property is a house in multiple occupation licensed under sections 61 to 65 of the Housing Act 2004. Licensed HMOs must meet the HMO Management Regulations (the Management of Houses in Multiple Occupation (England) Regulations 2006), and a condition report for each room and shared area documents compliance with the room size, amenity, and maintenance standards set by the local housing authority.

The energy performance note records the current Energy Performance Certificate (EPC) rating of the property under the Energy Performance of Buildings (England and Wales) Regulations 2012. From April 2020, landlords in England must not grant a new tenancy for a property with an EPC rating below E unless a valid exemption has been registered with the PRS Exemptions Register under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 (as amended). Recording the EPC rating at check-in confirms compliance at the start of the tenancy.

The forms-legal.com Property Condition Report (UK) template provides a room-by-room format suitable for all residential property types in England and Wales, including assured shorthold tenancies governed by the Housing Act 1988, HMOs licensed under the Housing Act 2004, and regulated tenancies under the Rent Act 1977.