Tenancy Deposit Protection: Rules, Deductions and Getting Your Deposit Back
A deposit must be protected in the DPS, mydeposits or TDS within 30 days, cannot exceed five weeks' rent for most lets, and must be returned within 10 days of agreeing deductions. An unprotected deposit costs the landlord one to three times its value.
Key points
- Landlords in England must protect a deposit in an authorised scheme and serve the prescribed information within 30 days of receiving it, under sections 213 to 215 of the Housing Act 2004.
- The Tenant Fees Act 2019 caps deposits at five weeks' rent (six where the annual rent is £50,000 or more) and holding deposits at one week's rent.
- Landlords can deduct only for proven losses such as damage beyond fair wear and tear, unpaid rent and cleaning back to the check-in standard, and must prove them with an inventory.
- Each scheme runs a free, binding dispute service; the agreed sum must be returned within 10 days, and the burden of proving a deduction rests on the landlord.
- A tenant whose deposit was not protected can claim one to three times its value in the county court within six years, and the landlord cannot get a possession order until the breach is fixed.
A tenancy deposit in England must be placed in one of three government-approved schemes within 30 days of the landlord receiving it, the tenant must be given the prescribed information about where it is held within the same 30 days, and for most tenancies it cannot exceed five weeks' rent. At the end of the tenancy the landlord can keep only what is needed to cover unpaid rent, damage beyond fair wear and tear and other losses the agreement allows, must return the agreed balance within 10 days, and must justify any deduction to a free, independent adjudicator if the tenant disagrees. A landlord who fails to protect the deposit faces a court order to pay the tenant one to three times its value and, since the Renters' Rights Act 2025 took effect, cannot obtain a possession order until the position is put right. This guide covers the rules, the caps, deductions, the dispute service, compensation claims and what changed in 2026.
The rules: protection and prescribed information within 30 days
Sections 212 to 215 of the Housing Act 2004 require a landlord who takes a deposit on an assured tenancy to protect it in an authorised scheme within 30 days of receiving it. Three schemes are authorised: the Deposit Protection Service (DPS), mydeposits and the Tenancy Deposit Scheme (TDS). Each offers a custodial option, where the scheme holds the money free of charge, and an insured option, where the landlord or agent keeps the money, pays a fee and the scheme guarantees it. Either way the tenant should receive confirmation from the scheme that can be checked online.
Within the same 30 days the landlord must serve the prescribed information set out in the Housing (Tenancy Deposits) (Prescribed Information) Order 2007: the scheme's name and contact details, the amount protected and the address it relates to, how to apply for its return, what to do if the landlord cannot be contacted at the end of the tenancy, how disputes are resolved, and the landlord's or agent's contact details, together with the scheme's information leaflet. The information must also go to anyone else who paid the deposit, such as a parent. Both duties apply to every deposit however small, and serving the information late does not undo the breach.
These rules are England's. Wales applies its own version under the Renting Homes (Wales) Act 2016 using the same three schemes, while Scotland and Northern Ireland have separate schemes and legislation.
How much can be taken: the five-week cap and holding deposits
The Tenant Fees Act 2019 capped deposits in England from 1 June 2019, and the Renters' Rights Act left the cap alone. Where the annual rent is under £50,000 the deposit cannot exceed five weeks' rent; where it is £50,000 or more but no more than £100,000 the cap is six weeks' rent; tenancies above £100,000 a year fall outside the Act. The sum is the monthly rent multiplied by 12, divided by 52 and multiplied by five (or six). Anything above the cap is a prohibited payment that must be refunded, and a council can fine a landlord or agent up to £5,000 for a first breach and up to £30,000, or prosecute, for a further breach within five years. A separate pet deposit is also prohibited, even though tenants now have a right to ask for a pet.
A holding deposit paid to reserve a property is capped at one week's rent. The landlord then has a deadline for agreement of 15 days unless a longer period is agreed in writing. If the landlord pulls out or the deadline passes without a tenancy being signed, the money must be refunded within seven days. The landlord may keep it only if the tenant withdraws, fails a right to rent check or gives false or misleading information, and must give the reason in writing; where the tenancy goes ahead it is put towards the first rent or the deposit.
Inventories, check-out reports and fair wear and tear
Adjudicators start from the principle that the deposit belongs to the tenant until the landlord proves a loss. The landlord therefore needs a detailed check-in inventory, with dated photographs and a record of cleanliness and meter readings, acknowledged by the tenant, and a check-out report prepared the same way. Without them a claim for damage or cleaning almost always fails. Tenants should check the inventory within the first few days, send corrections in writing and keep their own dated photographs.
Fair wear and tear is the deterioration that comes from reasonable use of the property and the ordinary operation of natural forces, and the landlord cannot charge for it. Worn hallway carpet after a three-year tenancy, scuffed walls and faded curtains are wear and tear; a burn in the carpet, a hole in a door or a stained mattress are damage. Adjudicators also refuse "betterment": the landlord recovers the proportion of an item's remaining life, not the price of a new one, so a seven-year-old carpet with a ten-year life earns a fraction of the replacement cost even if ruined. Cleaning deductions are allowed only to bring the property back to the standard recorded at check-in, and the Tenant Fees Act stops a landlord requiring the tenant to pay for a professional clean.
Getting the deposit back: the 10-day rule and the free dispute service
At the end of the tenancy the tenant asks for the deposit back, through the scheme's website for a custodial deposit or from the landlord or agent for an insured one, and the landlord replies with the amount proposed and an itemised list of deductions. Once both sides agree the figures, the landlord (or the scheme, for a custodial deposit) must pay the agreed amount within 10 days. Negotiating is sensible; a quick agreement often beats weeks waiting for an adjudication.
If agreement is not reached, either party can ask the scheme to refer the disputed sum to its free alternative dispute resolution service, and the undisputed part should be paid out straight away. Each scheme sets a window for starting a dispute (TDS, for example, normally needs it within three months of the tenancy ending), so do not let an argument drift. Both sides upload their evidence (agreement, inventory, check-out report, photographs, invoices, correspondence) and an independent adjudicator decides on the papers, on the balance of probabilities, with the burden on the landlord. The decision is binding and can be reopened only for a clear error, although either side can decline adjudication at the outset and go to the county court instead. The DPS aims to decide within 15 business days of receiving all the evidence; the other schemes publish their own targets, typically a few weeks.
Unprotected deposits: compensation of one to three times
If the landlord failed to protect the deposit within 30 days, failed to give the prescribed information, or both, section 214 of the Housing Act 2004 lets the tenant (or whoever paid the deposit) apply to the county court. Once the breach is proved, the court must order the landlord to pay a sum of between one and three times the deposit within 14 days, and must also order the deposit itself to be returned or paid into a custodial scheme. The multiplier reflects how culpable the landlord was: an agent or experienced landlord who ignored the rules pays nearer three times, a first-time landlord a few weeks late nearer once. Protecting the deposit late does not remove the right to claim, which can be brought during the tenancy or up to six years after the breach.
The process is a letter before claim setting out the breach and the sum sought, then a county court claim if the landlord does not settle; court fees depend on the amount claimed (GOV.UK publishes the scale), and where the claim is treated as a small claim the legal costs a loser can be ordered to pay are limited. Many tenants run these claims alone with help from Shelter or Citizens Advice, some solicitors take them on a fixed fee or no win no fee basis, and legal aid does not normally cover them. A landlord who receives a letter before claim should take advice promptly, because the penalty is mandatory once the breach is proved and early settlement is usually cheaper. A property solicitor can advise either side; the directory lists property solicitors in Bristol and the solicitors in Liverpool among other places, and the guide on recovering a debt through the small claims court explains the court procedure.
Deposits and possession after the Renters' Rights Act
Before 1 May 2026 an unprotected deposit meant a landlord could not serve a valid section 21 notice until the deposit was returned. Section 21 has gone, and the sanction has been rewritten to fit the new system: a court cannot make a possession order on any ground except the two antisocial behaviour grounds (7A and 14) while the deposit is unprotected, until the landlord protects it or returns it in full or less agreed deductions, or a compensation claim has been dealt with. For landlords, deposit compliance is therefore the first thing to check before serving a notice on Form 3A, and the guide on evicting a tenant legally sets out the other preconditions; for tenants facing a claim, it is the first question to ask an adviser.
The conversion of every assured shorthold tenancy into an assured periodic tenancy did not alter the deposit rules. A deposit protected before 1 May 2026 stayed protected and did not have to be registered again, the five-week cap continues to apply, and the deposit is held for as long as the periodic tenancy lasts. When a tenant ends the tenancy on two months' notice the return process is the same. Deposits now sit in schemes for longer, so keep the scheme record up to date when an agent changes or a joint tenant is replaced. For the wider changes, see the guide to the Renters' Rights Act, and for the framework of rights on each side, what landlord and tenant law covers.
Staying out of trouble: a checklist for both sides
For landlords: protect every deposit and serve the prescribed information within 30 days, keeping dated proof of both; use a professional or carefully compiled inventory with photographs; never ask for more than five weeks' rent or a pet deposit; respond to repayment requests promptly with an itemised list; and treat adjudication as a documents exercise, because the decision turns on what was recorded. A solicitor or a good letting agent will set this up for a modest fixed fee, and the guide to the cost of a landlord and tenant agreement covers what the paperwork costs.
For tenants: check the scheme's website for your deposit within a few weeks of moving in and ask for the certificate if you cannot find it; record the property's condition at the start and the end; pay the last month's rent rather than treating the deposit as rent, which is a breach the landlord can deduct for; and raise any dispute within the scheme's deadline. If the deposit was never protected, write to the landlord citing section 214 before issuing a claim, because many landlords settle at that stage. For a firm with housing experience near you, use the solicitors near me search.
Frequently asked questions
How do I check whether my deposit is protected?
Each of the three schemes has a free online checker where you enter the postcode, the deposit amount and the tenancy start date or your surname. Try all three if you do not know which the landlord used. You should also have received the prescribed information within 30 days of paying, naming the scheme. If you cannot find the deposit and the landlord cannot show a certificate, it may be unprotected and you may have a compensation claim.
Can a landlord keep the deposit for unpaid rent?
Yes. Unpaid rent is the most straightforward deduction, provided the tenancy agreement and a rent statement show what is owed. Adjudicators regularly award arrears in full because the evidence is simple. A tenant cannot insist on using the deposit as the last month's rent unless the landlord agrees, and doing so without agreement is a breach that the landlord can set against the deposit along with any other proven loss.
How long does a landlord have to return a deposit?
Ten days from the date both sides agree how much is to be returned. If the landlord does not respond to a repayment request, or the two sides disagree, the clock has not started, so raise a dispute with the scheme rather than waiting. The undisputed part of the deposit should be released while the disputed part is decided. The DPS aims to decide a dispute within 15 business days of receiving the evidence from both sides.
What is the penalty for not protecting a deposit?
The county court must order the landlord to pay the tenant between one and three times the deposit within 14 days, plus return of the deposit itself or payment into a scheme. The multiplier depends on how blameworthy the landlord was. Since 1 May 2026 an unprotected deposit also prevents the landlord obtaining a possession order on any ground except serious antisocial behaviour, and the claim can be brought up to six years after the breach.
Can a landlord ask for a bigger deposit for a pet?
No. In England the deposit is capped at five weeks' rent (six weeks where the annual rent is £50,000 or more) whatever the circumstances, and a pet deposit or pet fee is a prohibited payment under the Tenant Fees Act 2019. The Renters' Rights Act gave tenants a right to request a pet that cannot be unreasonably refused, and the proposal to let landlords require pet insurance was dropped before the Act was passed. Damage caused by a pet is claimed from the ordinary deposit like any other damage.
Did deposits have to be re-protected when tenancies changed on 1 May 2026?
No. When fixed-term and shorthold tenancies became assured periodic tenancies, deposits already held in a scheme stayed protected and landlords did not have to register them again or serve the prescribed information a second time. The cap, the 30-day rule and the dispute process are unchanged. Landlords should still check that the scheme record shows the right tenants, agent and address, because errors surface at the worst moment, when a possession claim or a repayment request is made.
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This guide describes the law in England as at 30 October 2026. It is general information, not legal advice about your situation; the law and the figures it quotes change, so check the position with a solicitor before acting. LawFirms.co.uk is a directory and does not provide legal services.