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If the landlord withholds part of a deposit, is (s)he legally required to spend it on the property?

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We have recently left a rented house and our landlord is trying to withhold part of our deposit for minor redecoration and maintenance to back garden. We are disputing the claim. We have seen that he has just sold the house, without so far as we can tell having done any of the work he is claiming for. Can he withhold the deposit for his own private use, or must he spend it on the work he is claiming for?

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