Our letting agency have verballly informed my wife that we do not need to fill any holes in the wall from hanging pictures and putting up shelves. Having read all the scare stories of landlords being awkward is this something we should trust or should we expect a heavy hit on our deposit for listening to them?

Don't listen to them

Buy toothpaste

Well, you're taking your chances, but how have they been to deal with otherwise? Do you get the impression they're doing everything strictly by the book or does common sense prevail?

Last time we moved out, our landlord told us not to bother getting the carpet steam cleaned as he was just going to ditch it and revert to parquet anyway. Sensible landlords do exist, it's just a question whether yours is one of them.

If you're too worried about it I'd say just plan on filling the holes yourself (it's not that hard or expensive) and then you can rest easy.

Probably a good idea to drop them an email or letter to ask exactly what you are required to do on leaving. Once it is in writing there can be no surprises after you leave. You could include something along the lines of 'further to our conversation, you confirmed that we do not need to fill holes in walls .....'

Depending on how long you have been there, they may have budgeted for full redecoration anyway.

Our landlord has also asked us not to fill in holes. We asked if we are charged for the repairs and they said no. If it's a few nail holes from pictures and paintings, then its probably not going to cause a fuss.

Just ask the agent anyway, but I doubt you will be up for any costs.

So, if one does decide to do the job, what's a better solution than toothpaste?

I bought something here from Migros called "Reparatur Moltofill" or "Innen Fertigspachtel" that works VERY well and seems to dry to a color that matches off-white walls pretty well. It comes in a tube (yellow and white tube with a red cap). It seems to be the exact same thing as what we call "spackling" in the US.

Yes, I would ask them if the reason they don't want you to fill the holes yourself is because they plan to re-paint the walls. (I could understand why some landlords would rather re-fill the holes themselves just to ensure that the texture of the filled hole matches the texture of the rest of the wall. It can be a bit tricky to get it to look right).

We have also been told not to fill the holes in so less work for me.

Don't fill them in. Holes in walls from "normal use" (such as hanging paintings, putting up some shelving) comes under fair wear and tear. if you fill them up and make a mess, then its a botched DIY job and you may need to pay for repainting (although that private liability insurance or whatever it is should then cover it).

First apartment they told us not to fill the holes and try to charge us for every single of them. It was a very dirty fight for so many things. But we got our deposit back because they were trying to screwed our insurance company.

Second apartment, I used moltofill and a paint to paint on it and others spots here and there (like scratches, colorations, etc) on the walls.

The agency was totally impressed how clean our apartment was. They told us it was the first time ever they had an apartment in such a good shape after 2 years of living in.

Got our deposit back minus 4 holes (8 chf each) on the ceiling where the lamps were... I forgot to moltofill those ones...

"we are what we reeatedly do. excellence then is not an act, but a habit"
Aristotle

I put up a plasma screen on the wall (ok'd by the landlord). I had to drill about six large holes in the wall to support the weight (up to 60kg).

I'm working on the assumption that it will need more than toothpaste.. but what is the answer...?

Talcum powder and water.

Really...? I mean, really?

I use Molto Reparatur Moltofil bought from Jumbo.
Basically any reparatur filler will work, but buy one in a tube, much easier to handle.
Plug the hole first with something pushed in it (squashed paper), brush the hole or dampen it somehow so the filler will adhere, then apply filler using something very small, i've used chopsticks, toothpicks pens etc.
The first application of filler shrinks back and cracks, so you have to do it twice. Getting the finish is easy.

That said, your liability insurance covers all this if you're moving out, as AdrianLondon said.

Holds long enough for an inspection. But Moltofil is probably a bit more honest.