Tenant Deposit Protection Rules: A Complete Guide for Landlords

What are the deposit protection rules for landlords in England?

Within 30 days of receiving a tenancy deposit, you must protect it in one of the three government-approved schemes and give the tenant the prescribed information. If you don't, the tenant can claim one to three times the deposit, and since 1 May 2026 a court cannot make a possession order on most grounds until the breach is put right.

These rules come from sections 212–215 of the Housing Act 2004, which the Renters' Rights Act 2025 amended from 1 May 2026 so that they apply to all assured tenancies (the old "assured shorthold" wording is gone, along with section 21).

The three approved schemes

GOV.UK lists three approved schemes in England: the Deposit Protection Service (DPS), MyDeposits and the Tenancy Deposit Scheme (TDS). Each one offers two ways to protect a deposit:

• Custodial — you pay the deposit to the scheme, which holds it for free.
• Insured — you or your agent keep the deposit and pay the scheme to insure it. If there is a dispute at the end of the tenancy, you must hand the disputed money to the scheme to hold until it is resolved.

Custodial protection is the simpler choice for most self-managing landlords: there is no fee and the money is never in your account.

The 30-day deadline

Two details in that wording matter. The clock runs from when the money is received (by you or your agent), not from the tenancy start date. And the 30 days begin with that date, so the day the money arrives is day 1.

Worked example

If a tenant pays in two instalments, the safest course is to protect each sum within 30 days of receiving it rather than waiting for the full amount.

Prescribed information

Protecting the deposit is only half the duty. Under section 213(5) and (6), you must also give the prescribed information, in the prescribed form or one "substantially to the same effect", to the tenant and to any "relevant person" (for example a parent who paid the deposit) within the same 30 days. GOV.UK summarises what it must cover:

• the address of the rented property
• how much deposit has been paid and how it is protected
• the name and contact details of the scheme and its dispute resolution service
• your (or your agent's) name and contact details
• the name and contact details of any third party who paid the deposit
• why you might keep some or all of the deposit
• how to apply to get the deposit back at the end of the tenancy
• what to do if the tenant cannot contact you at the end of the tenancy
• what to do if there is a dispute over the amount returned

Each scheme issues its own prescribed information template or certificate. Use it rather than drafting your own, and give a copy to every tenant named on the agreement.

What happens if you don't comply?

The tenant can claim up to three times the deposit

Under section 214, a tenant (or former tenant, or relevant person) can apply to the county court if the deposit was not protected within 30 days or the prescribed information was not given within 30 days. If the court agrees, it must order you to pay an amount of not less than the deposit and not more than three times the deposit. On a £1,200 deposit, that is between £1,200 and £3,600. The court can also order the deposit to be repaid or paid into a custodial scheme. Late compliance does not remove this exposure.

Possession is blocked on most grounds

Section 21 was abolished on 1 May 2026, so the old rule that "you can't serve a section 21 notice" no longer applies to new claims. The Renters' Rights Act replaced it with a wider restriction. Under the new section 215, where a deposit has been paid for an assured tenancy, the court may make a possession order only if:

1. the deposit is being held in an authorised scheme;
2. the scheme's initial requirements have been met (even if late); and
3. the prescribed information has been given.

As Shelter Legal explains, the only exceptions are the antisocial behaviour grounds, Ground 7A and Ground 14. That means rent arrears grounds, selling (Ground 1A) and moving in (Ground 1) are all caught.

The restriction bites when the court decides whether to make an order, not when you serve the notice. It is lifted if you protect the deposit and serve the prescribed information (even late), if you return the deposit in full or with agreed deductions, or once a section 214 claim has been decided, withdrawn or settled.

For the grounds themselves, see our complete list of Section 8 grounds.

The deposit cap

The Tenant Fees Act 2019 caps a tenancy deposit at five weeks' rent where the annual rent is under £50,000, or six weeks' rent where it is £50,000 or more. The cap applies to the whole property, not to each joint tenant. A holding deposit is capped separately at one week's rent.

Taking more than the cap is a prohibited payment. According to the government's enforcement guidance, councils can impose a penalty of up to £5,000 for a first breach, and up to £30,000 or prosecution for a repeat breach within five years.

At the end of the tenancy

GOV.UK says the deposit must be returned within 10 days of you and the tenant agreeing how much they will get back. If you cannot agree on deductions, either of you can use the scheme's free dispute resolution service. The adjudicator decides on written evidence alone, and the DPS says the landlord has to prove the deduction is justified. That is why a dated, signed check-in inventory matters. Our inventory and check-in checklist covers what to record.

Common mistakes

• Counting from the tenancy start date. The 30 days run from when the money is received.
• Protecting the deposit but not giving the prescribed information. Both are needed, and a late or missing prescribed information pack triggers the same section 214 claim.
• Forgetting the person who paid. If a parent or guarantor paid the deposit, they are a "relevant person" and must get the prescribed information too.
• Treating a holding deposit as outside the rules forever. It does not need protecting while it is a holding deposit, but once the tenancy starts and it becomes a tenancy deposit, you must protect it.
• Re-protecting unnecessarily. Shelter Legal notes that you do not have to protect the deposit again or re-serve the prescribed information for a replacement tenancy, including when an existing tenancy became periodic on 1 May 2026. Check your scheme registration is still live.

Frequently asked questions

Does the 30-day deadline include weekends and bank holidays?

Yes. The Act says "30 days", not working days, and the period begins with the day the deposit is received.

I missed the 30-day deadline. What should I do?

Protect the deposit and serve the prescribed information now, or return the deposit. Either lifts the bar on possession under section 215, but neither removes the tenant's right to claim one to three times the deposit under section 214. Take legal advice if a claim is likely.

Can I use section 21 if I protect the deposit?

No. Section 21 was abolished for private tenancies in England from 1 May 2026. Possession now goes through Section 8 grounds. See how to end a tenancy after section 21.

Do I need to protect a deposit for a lodger?

No. GOV.UK confirms that a landlord does not have to protect a lodger's deposit in a scheme, though you can choose to. You should still return the deposit, or the balance after any deductions, at the end of the agreement.

Further reading

• Renters' Rights Act 2025: what landlords need to know
• Setting up a tenancy: the landlord's compliance checklist
• Periodic tenancies explained for landlords