Tenancy deposit scheme: protection rules for landlords
By TenancyDesk · Sources checked
Landlords in England who take a deposit on an assured periodic tenancy must protect it in a government-approved tenancy deposit scheme within 30 days: the Deposit Protection Service, MyDeposits or the Tenancy Deposit Scheme. The cap is five weeks’ rent, or six where annual rent is £50,000 or more. Courts can award tenants up to three times the deposit.
- Protect the deposit
- Within 30 days of receiving it
- Give the required information
- Within the same 30 days
- Deposit cap
- 5 weeks’ rent (6 weeks if annual rent is £50,000 or more)
- Holding deposit cap
- 1 week’s rent
- Approved schemes
- DPS, MyDeposits, TDS
- Court penalty
- Up to 3 times the deposit
Which tenancy deposit schemes are approved?
There are three government-approved tenancy deposit protection schemes in England and Wales: the Deposit Protection Service, MyDeposits and the Tenancy Deposit Scheme. If you take a deposit for an assured periodic tenancy you must use one of them. That includes a deposit paid by someone else, such as a parent or a rent deposit scheme.
Each landlord deposit scheme works in one of two ways. In a custodial scheme, the scheme holds the deposit and it is free to use. In an insured scheme, you or your agent hold the deposit and pay the scheme to insure it.
Some GOV.UK pages still describe the duty as applying to assured shorthold tenancies that started after 6 April 2007. Those tenancies became assured periodic tenancies on 1 May 2026 and the duty carries on. Scotland and Northern Ireland have their own schemes.
| Type | Who holds the money | Cost to the landlord |
|---|---|---|
| Custodial | The scheme | Free |
| Insured | You or your agent | A fee paid to the scheme |
Sources: GOV.UK: tenancy deposit protection · GOV.UK: deposit protection schemes and landlords
Do all deposits have to be protected?
Every money deposit taken for an assured periodic tenancy does, whoever paid it. Since 1 May 2026 that covers almost all private tenancies in England where the landlord does not live in the property.
A holding deposit is the main exception, and only while it is reserving the property. GOV.UK also says that where a home is not let on an assured periodic tenancy, for example where the landlord lives there, a landlord can accept a valuable item such as a car or a watch as a deposit instead of money, and that item will not be protected by a scheme.
If a letting agent takes the deposit for you, check that it was protected and that the information went out, and keep a copy of both. The information given to the tenant has to include your contact details or the agency’s.
Sources: GOV.UK: tenancy deposit protection · GOV.UK: deposit protection schemes and landlords · GOV.UK: information landlords must give tenants
How long do you have to protect a deposit?
30 days from the day you receive it. Within the same 30 days you must also give the tenant specific written details, known as the prescribed information. Protecting the money and giving the information are two separate duties.
GOV.UK lists what you must tell the tenant: the address of the property; how much deposit was paid; how the deposit is protected; the name and contact details of the scheme and its dispute resolution service; your name and contact details, or your letting agent’s; the name and contact details of any third party who paid the deposit; why you would keep some or all of it; how to apply to get it back; what to do if the tenant cannot get hold of you at the end of the tenancy; and what to do if there is a dispute.
In practice the steps are: choose a scheme and decide between custodial and insured; pay the deposit in, or register it, as soon as you receive it; save the scheme’s confirmation; send the prescribed information to every tenant; and keep proof of when and how you sent it. Doing all of this in the first week leaves room to fix a mistake before day 30.
A payment entry proves that money moved. It does not prove protection or that the information reached the right people. Keep the scheme confirmation and a record of the information alongside the receipt. For a new tenancy, the deposit amount must also appear in the written statement of terms.
Sources: GOV.UK: tenancy deposit protection · GOV.UK: information landlords must give tenants
What is the maximum deposit a landlord can take?
Five weeks’ rent where the annual rent is under £50,000, and six weeks’ rent where it is £50,000 or more. A holding deposit, taken to reserve the property, is a different payment capped at one week’s rent.
A holding deposit does not need protecting while it is only reserving the property. GOV.UK says that once the person becomes your tenant, the holding deposit becomes a deposit, which you must protect. Our guide to holding deposit rules covers the deadlines for returning one.
The deposit is separate from rent in advance, which has had its own limits since 1 May 2026: see rent in advance and rental bidding rules. A deposit above the cap is a prohibited payment under the Tenant Fees Act 2019. Councils can impose a penalty of up to £5,000 for a breach, and up to £30,000 where the breach is also an offence under the Act.
| Payment | Maximum |
|---|---|
| Tenancy deposit, annual rent under £50,000 | 5 weeks’ rent |
| Tenancy deposit, annual rent £50,000 or more | 6 weeks’ rent |
| Holding deposit | 1 week’s rent |
Sources: GOV.UK: rent in advance and deposits · GOV.UK: tenancy deposit protection · Legislation: Tenant Fees Act 2019, section 8 (financial penalties)
What happens if you do not protect the deposit?
The tenant can apply to the county court at any time during the tenancy. If the court finds the deposit was not protected, it can order you to repay it, or to pay it into a custodial scheme, within 14 days. It can also order you to pay the tenant up to three times the deposit within 14 days of making the order.
It also affects possession. GOV.UK says that if you took a deposit, you need to have complied with the deposit rules and kept it safe in an approved scheme to end a tenancy through the courts. Section 215 of the Housing Act 2004, as amended from 1 May 2026, stops a court making a possession order while the deposit is unprotected or the prescribed information has not been given. The Act excepts the antisocial behaviour grounds 7A and 14, and cases where the deposit has been returned or a deposit claim has been decided or settled. Get advice on how it applies to you.
This matters more now that section 21 has gone. Every possession claim runs through section 8 and Form 3A, so check the deposit file before you serve a notice. Our guide on how to evict a tenant in England sets out the full sequence.
Sources: GOV.UK: deposit protection schemes and landlords · GOV.UK: ending an assured periodic tenancy · Legislation: Housing Act 2004, section 215
Returning the deposit at the end of the tenancy
You must return the deposit within 10 days of you and the tenant agreeing how much they will get back. The 10 days run from that agreement, not from the day the tenant moves out. Record the date you reached agreement, because that is when the 10 days start.
If you cannot agree, each scheme has a dispute resolution service, and its contact details are part of the information you gave at the start. Deductions need evidence, so keep the inventory, the check-in and check-out records, photographs and receipts.
Agree deductions in writing where you can. A clear list of what is being kept, and why, should match the reasons you gave at the start for when you would keep some or all of the deposit.
Sources: GOV.UK: tenancy deposit protection · GOV.UK: information landlords must give tenants
Common deposit protection mistakes
Late protection is the classic one: the deadline is 30 days, and a deposit protected later is late even though the money is safe. The others are protecting the deposit but never sending the prescribed information, sending it to one joint tenant and not the rest, forgetting that a holding deposit turned into part of the deposit, adding a pet deposit that takes the total over the cap, and letting an agent hold the deposit without checking it was protected.
If you find one of these, do not backdate anything. Check the scheme’s own record first, because missing evidence and a missed legal deadline are different problems, then get advice about the actual position. Producing a document now does not show the original deadline was met.
Sources: GOV.UK: tenancy deposit protection · GOV.UK: information landlords must give tenants
What to keep in the deposit file
A consistent record helps you answer questions during the tenancy and spot omissions before it ends. These are practical filing suggestions, not a substitute for the scheme’s requirements.
- Amount, date received, payer and the tenancy the payment relates to.
- The rent figure and the calculation used to check the deposit cap.
- Scheme name, reference and confirmation of protection, dated within 30 days.
- The prescribed information and any scheme documents supplied.
- Who received the information, when it was sent and evidence of delivery.
- The signed agreement the deposit belongs to. See our tenancy agreement template guide.
- The inventory, condition records and later correspondence relevant to deductions.
Common questions
How long does a landlord have to protect a deposit?
30 days from receiving it. For an assured periodic tenancy in England the deposit must be in a government-approved scheme within that time, and the required information about the deposit must be given to the tenant within the same 30 days. They are two separate duties.
Which tenancy deposit schemes are government approved?
Three: the Deposit Protection Service, MyDeposits and the Tenancy Deposit Scheme. They cover England and Wales. Each offers protection either as a custodial scheme, which holds the money and is free, or an insured scheme, where the landlord keeps the money and pays a fee.
What is the maximum deposit a landlord can take?
Five weeks’ rent where the annual rent is under £50,000, and six weeks’ rent where it is £50,000 or more. A holding deposit is a separate payment capped at one week’s rent, and it becomes part of the deposit once the person becomes your tenant.
What is the penalty for not protecting a tenancy deposit?
Up to three times the deposit. A county court can order the landlord to pay the tenant that amount within 14 days, and to repay the deposit or put it into a custodial scheme. A landlord who has not complied can also be refused a possession order.
Is protecting the deposit enough on its own?
No. Within the same 30 days you must give the tenant the prescribed information, including how the deposit is protected, the scheme’s contact details and how to get the money back. A bank entry shows the money moved, not that either duty was met.
When does a deposit have to be returned?
Within 10 days of the landlord and tenant agreeing how much will be returned. The 10 days run from that agreement, not from move-out day. If they cannot agree, the scheme’s dispute resolution service can decide, using evidence such as the inventory, check-out report, photographs and receipts.
Does a deposit paid by a parent or guarantor need protecting?
Yes. GOV.UK says the landlord must use a tenancy deposit scheme even if the deposit is paid by someone else, such as a rent deposit scheme or the tenant’s parents. The information you give must include the name and contact details of that third party.
Official sources and scope
Checked on 5 October 2026. This is general information for private landlords in England, not legal advice or a complete compliance assessment. Follow the current official guidance for your tenancy and get advice about exceptions, missed deadlines or disputes.
- GOV.UK: tenancy deposit protection
- GOV.UK: information landlords must give tenants
- GOV.UK: deposit protection schemes and landlords
- GOV.UK: rent in advance and deposits
- GOV.UK: ending an assured periodic tenancy
- Legislation: Housing Act 2004, section 215
- Legislation: Tenant Fees Act 2019, section 8 (financial penalties)
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