Cart
Tenancy Deposit Protection: A Guide for Landlords in England
Understand when and how to protect a tenant’s deposit, what information you must provide, and how to avoid costly mistakes.
At a glance: the 30-day rule
If you receive a tenancy deposit for an Assured Periodic Tenancy (APT), you or your letting agent must protect it in a government-authorised scheme within 30 days of receipt and provide the required prescribed information within the same period.
The deadline runs from receiving the money, not from the tenant moving in. Deposit protection is a legal obligation, not an optional extra. GOV.UK guidance →
What is tenancy deposit protection?
A tenancy deposit is money paid by a tenant as security against certain breaches of the tenancy agreement, such as unpaid rent or damage beyond fair wear and tear. Deposit protection legislation safeguards that money and provides a process for resolving disagreements about repayment.
The rules apply to most private assured tenancies in England, including APTs introduced under the Renters’ Rights Act 2025 from 1st May 2026. Existing ASTs generally became APTs under the new regime; the reform did not remove existing deposit protection obligations.
How much deposit can a landlord take?
Under the Tenant Fees Act 2019, the maximum tenancy deposit for most private residential lettings in England depends on the annual rent:
Up to 5 weeks’ rent
Where the annual rent is less than £50,000.
Up to 6 weeks’ rent
Where the annual rent is £50,000 or more.
For example, at £1,200 per calendar month, the annual rent is £14,400 and the five-week maximum is approximately £1,384.61. The deposit cap is calculated using weekly rent, not by treating one calendar month as four weeks.
These limits are separate from the holding deposit cap, which is generally one week’s rent. See the official deposit guidance →
Which deposit protection schemes can landlords use?
There are three government-authorised tenancy deposit protection providers operating in England and Wales:
Deposit Protection Service (DPS)
Offers deposit protection and processes for repayment and disputes.
Tenancy Deposit Scheme (TDS)
Offers custodial and insured protection, including independent dispute resolution.
mydeposits
Provides deposit protection and independent resolution services for disagreements.
Choosing a scheme
Check the scheme’s current terms, registration process, costs for insured protection and repayment procedures before selecting it.
Custodial or insured: what is the difference?
Custodial protection
The deposit money is transferred to the scheme, which holds it during the tenancy. Custodial protection is generally free to use. At the end of the tenancy, repayment is handled through the scheme.
Insured protection
The landlord or agent retains the deposit money and pays a fee for scheme-backed protection. The deposit must remain available for repayment, and disputed money may need to be transferred to the scheme.
Both types of protection offer access to dispute resolution. Neither gives a landlord an automatic right to make deductions. Compare the two options on GOV.UK →
What must landlords do within 30 days?
- Protect the deposit: Complete the chosen scheme’s initial protection requirements within 30 days of receiving the deposit.
- Serve prescribed information: Give the tenant and any relevant third-party deposit payer the legally required information about the deposit and scheme.
- Keep evidence: Retain the protection certificate, prescribed information, scheme leaflet where required, and proof that the documents were provided.
The prescribed information covers the property, amount paid, scheme details, landlord or agent contact details, relevant third-party payers, circumstances in which deductions may be made, and the process for repayment or disputes.
What happens if a deposit is protected late or not protected?
Failing to comply with the deposit protection requirements can have serious consequences. A tenant may bring a county court claim and the court can order repayment or payment into a custodial scheme, together with a financial award of between one and three times the deposit, depending on the circumstances.
Non-compliance may also prevent a landlord from obtaining a possession order on most statutory grounds until the relevant deposit requirements have been addressed. The exact effect depends on the ground and circumstances.
What happens when the tenancy ends?
At the end of the tenancy, the landlord should assess the property’s condition, review the inventory and check-out evidence, and identify any rent arrears or other supported claims. Any proposed deductions should be reasonable, permitted by the tenancy agreement and backed by evidence.
Once the parties agree how much is to be returned, the deposit must be repaid within 10 days. If there is a disagreement, the disputed amount remains protected while the matter is resolved.
Common potential deductions
- Unpaid rent
- Damage beyond fair wear and tear
- Cleaning costs where justified by the property’s condition at check in
- Other proven contractual losses
Evidence that helps
- Signed check-in inventory and photographs
- Check-out report and dated photographs
- Rent statements and correspondence
- Invoices, estimates and evidence of actual loss
Landlords should not charge tenants for ordinary fair wear and tear or use deductions to obtain a better replacement than the item or condition originally provided.
What if the tenant disputes a deduction?
All three authorised schemes provide an alternative dispute resolution (ADR) process. The parties can submit evidence for independent consideration rather than immediately pursuing court proceedings. Scheme rules and time limits vary, so follow the guidance of the scheme protecting the deposit.
Try to agree the undisputed amount promptly and keep communication clear. If agreement cannot be reached, use the scheme’s dispute procedure or seek advice on the available court route. GOV.UK dispute guidance →
Frequently asked questions
Does the landlord have to protect a deposit paid by a parent?
Yes, where the tenancy deposit protection rules apply. A deposit paid by a parent or another third party must still be protected, and the prescribed information requirements also cover relevant third-party payers.
Does a landlord have to re-protect a deposit when an AST became an APT?
Not simply because of the statutory change on 1st May 2026. However, landlords should check that the existing protection remains valid and that scheme requirements are satisfied if the tenancy, parties or deposit arrangements change.
Can a landlord keep the entire deposit because the tenant has breached the agreement?
Not automatically. Deductions must be justified by the tenancy terms, supported by evidence and proportionate to the landlord’s actual loss. The balance should be returned.
Can the deposit be used as the final month’s rent?
Not automatically. A deposit is security, not advance rent. Unless the parties agree otherwise, rent remains payable under the tenancy agreement and the deposit is dealt with separately at the end.
Do company lets and lodger arrangements require deposit protection?
Not necessarily. The statutory tenancy deposit scheme rules principally apply to qualifying assured tenancies. Different arrangements may fall outside those requirements, but the legal status of the occupation must be assessed rather than relying only on the agreement’s title.
Official guidance and further reading
Important: General information for private landlords in England, reviewed October 2026. This is not individual legal advice. Rules and scheme procedures can change; consult the latest official guidance and your scheme’s terms before acting.