Tenancy Deposit Protection Rules for Landlords in England

A landlord who takes a tenancy deposit for an assured periodic tenancy in England must keep it in a government-approved tenancy deposit protection scheme and give the tenant the required information. The protection and information deadlines are both 30 days from receipt of the deposit.

This guide focuses on England's assured periodic tenancy system after 1 May 2026. Wales also uses government-approved tenancy deposit schemes, but Welsh tenancy law and possession procedures are separate. Scotland and Northern Ireland operate different schemes.

Which deposits must be protected

In England, a deposit taken on or after 6 April 2007 for an assured periodic tenancy must be kept in an approved scheme. Most former assured shorthold tenancies automatically became assured periodic tenancies on 1 May 2026, and new private assured tenancies are created as periodic tenancies.

The deposit can be paid by the tenant or by a third party, such as a parent or a rent deposit scheme. Payment by someone else does not remove the protection duty.

A holding deposit is different. It reserves a property while checks are completed and can be up to one week's rent. It does not need tenancy deposit protection while it remains a holding deposit. If the money later becomes part of the tenancy deposit, the landlord must protect it within the applicable 30-day period.

A landlord can take a tenancy or security deposit before the tenancy agreement is signed. That is distinct from rent in advance. Since 1 May 2026, rent generally cannot be requested, encouraged or accepted before the agreement is signed, while a permitted holding deposit and tenancy deposit can still be taken during the pre-tenancy process.

The 30-day protection deadline

The landlord or letting agent must place the deposit into one of the government-approved schemes within 30 days of receiving it. The approved providers listed by GOV.UK are:

• Deposit Protection Service;
• MyDeposits; and
• Tenancy Deposit Scheme.

The providers offer custodial and insured options. With a custodial scheme, the scheme holds the money. With an insured option, the landlord or agent holds the deposit and pays for scheme protection. The same legal deadlines apply whichever model is chosen.

The protection record should show the date the money was received, the amount, who paid it, the scheme used and the date protection was completed. An agent completing the task on a landlord's behalf should give the landlord access to the scheme certificate and related records.

Information the tenant must receive

Protecting the money is only one part of the duty. Within the same 30-day period, the landlord must tell the tenant:

• the address of the rented property;
• the amount of the deposit;
• how the deposit is protected;
• the scheme's name, contact details and dispute-resolution service;
• the landlord's or letting agent's name and contact details;
• the name and contact details of any third party that paid the deposit;
• the circumstances in which some or all of the deposit may be retained;
• how the tenant can apply to have the deposit returned;
• what happens if the landlord cannot be contacted at the end of the tenancy; and
• what happens if there is a dispute.

This is often called the prescribed information. Current GOV.UK guidance does not state that the tenant must sign the information for delivery to count. The landlord should follow the chosen scheme's current process and retain dated evidence of what was supplied.

Deposit caps

For an assured periodic tenancy in England, the maximum tenancy deposit is:

• five weeks' rent where annual rent is below £50,000; or
• six weeks' rent where annual rent is £50,000 or more.

A holding deposit is capped separately at one week's rent. A landlord or agent who receives more than the permitted tenancy deposit should return the excess. The tenant can report a refusal to the local council and may also have a tribunal or redress route depending on whether the payment was taken by a landlord or agent.

The deposit cap does not allow extra compulsory payments to be relabelled as deposits. Other payments must be allowed by the Tenant Fees Act rules in force at the time.

Returning the deposit and resolving disputes

At the end of the tenancy, the deposit should be returned within 10 days after landlord and tenant agree how much is to be repaid. The landlord may propose deductions for matters such as unpaid rent or tenant-caused damage where the tenancy and evidence support them.

If the parties disagree, the approved scheme offers a free dispute-resolution service. Both parties provide evidence and, if they use that service, its decision about the deposit is final. The money remains protected until the dispute is settled.

Useful evidence can include the tenancy agreement, check-in and check-out reports, dated photographs, rent records, invoices and communications about damage or cleaning. Evidence should relate to the actual loss claimed; the deposit is not an automatic end-of-tenancy fee.

Consequences of failing to protect a deposit

A tenant who believes the deposit should have been protected can apply to the county court. If the court finds that the landlord failed to use an approved scheme when required, it can order the landlord to repay the deposit or pay it into a scheme within 14 days. The court may also order compensation of up to three times the deposit.

Deposit compliance also affects possession proceedings started under the post-1 May 2026 system. To use most possession grounds, a landlord must be able to show that:

• the deposit was protected in an approved scheme;
• the scheme requirements that applied on receipt were followed; and
• the required information was given to the tenant.

Current GOV.UK possession guidance states that the court can make an order where the landlord has complied, has returned the deposit in full or with agreed deductions, or where a tenant's court challenge about deposit compliance has been decided, settled or withdrawn. Antisocial-behaviour grounds can have different treatment.

Section 21 is no longer the ordinary route for notices served from 1 May 2026. References to deposit compliance blocking a new Section 21 notice are therefore outdated, although separate transitional rules can still apply to notices served before that date.

A deposit compliance checklist

For each tenancy deposit, record:

1. The amount, payer and date received.
2. The tenancy type and property address.
3. The approved scheme and protection date.
4. The prescribed information supplied within 30 days.
5. Evidence of delivery to the tenant and any third-party payer.
6. The deposit cap calculation.
7. Check-in evidence and later property-condition records.
8. Any agreed deductions, dispute submission and repayment date.

These records make the timeline clear for the tenant, scheme, court or new managing agent. For a wider operational overview, see Landlord compliance basics and the current possession rules after 1 May 2026.

This is general information for England, not legal advice; check current GOV.UK guidance or obtain advice for a specific case.