Deposit Protection — What UK Landlords Must Do
Every tenancy deposit in England must be protected in a government-authorised scheme within 30 days of receipt, and the tenant must be given the prescribed information about where it is held. Getting this wrong exposes landlords to fines of up to three times the deposit — and undermines any future possession claim.
The deposit protection rules
The Tenancy Deposit Protection (TDP) regime has been in force since 2007. Every deposit taken for an assured or assured shorthold tenancy in England must be:
- Protected in one of the three government-authorised schemes within 30 days of receiving the deposit
- The tenant (and any relevant person, such as a guarantor) must be given the prescribed information within the same 30-day window
Under the Renters' Rights Act 2025, all tenancies are now periodic assured tenancies. The deposit protection requirements are unchanged — they apply from the moment you receive the deposit.
The three government-authorised schemes
| Scheme | Type | How it works |
|---|---|---|
| Deposit Protection Service (DPS) | Custodial & insured | Custodial: DPS holds the money. Insured: landlord holds the money; DPS insures it. |
| myDeposits | Custodial & insured | Same two options. Widely used by letting agents. |
| Tenancy Deposit Scheme (TDS) | Custodial & insured | Same two options. Often used by RICS-regulated agents. |
All three schemes are free for custodial protection. Insured protection usually carries a per-deposit fee.
What is the prescribed information?
As well as protecting the deposit, landlords must serve the prescribed information on the tenant (and any relevant person) within 30 days. The prescribed information must include:
- The name and contact details of the scheme holding the deposit
- The amount of the deposit protected
- How the deposit can be reclaimed at the end of the tenancy
- What happens if there is a dispute about deductions
- The circumstances under which deductions can be made
Each scheme provides its own prescribed information leaflet or certificate. Tenant City stores the scheme name, reference number, and protection date — the key details needed for the served notice.
Consequences of failing to protect
- Fine of 1–3× the deposit amount — payable to the tenant, ordered by the court
- Rent Repayment Order exposure — tenants can claim back rent in some circumstances
- Cannot use certain Section 8 grounds — unprotected deposits compromise possession claims
- Cannot serve a valid deposit deduction — unprotected deposits mean you cannot claim any end-of-tenancy deduction through the dispute resolution process
Importantly, late protection — even by a single day — still triggers potential liability. The court has discretion over the level of fine, but protection must be completed within 30 days without exception.
Deposit cap — how much can you charge?
Under the Tenant Fees Act 2019, deposits are capped:
- Up to £50,000 annual rent: maximum 5 weeks' rent
- Over £50,000 annual rent: maximum 6 weeks' rent
Charging more than the permitted cap is a prohibited payment under the Act, potentially subject to enforcement by Trading Standards.
Deposit deductions at the end of tenancy
At the end of a tenancy, landlords can deduct from the deposit for:
- Unpaid rent
- Damage beyond fair wear and tear
- Cleaning to the standard at move-in (if supported by evidence)
- Other breaches of the tenancy agreement
Deductions cannot be made for fair wear and tear — general deterioration from normal use. To claim deductions successfully, you need a signed move-in inventory and a move-out inspection report to compare. Without both, deposit scheme adjudicators will typically side with the tenant.
Learn how Tenant City handles move-in and move-out documentation →
How Tenant City tracks deposits
- Deposit details recorded per tenancy — amount, scheme, reference number, and protection date all stored against the tenancy record
- 30-day deadline visibility — the protection deadline is calculated and displayed from the day you enter the deposit receipt date
- Compliance status per property — the property compliance panel shows whether deposit protection is recorded for each active tenancy
- Move-in inventory storage — store your signed inventory against the tenancy so the deposit deduction evidence is always in the same place as the deposit record
Track deposit protection alongside all your other compliance requirements — free with Tenant City Standard.
Start freeThis page is for general information only and does not constitute legal advice. Always verify current requirements with a solicitor or check GOV.UK.