Deposit protection in five steps
- Take no more than the cap: 5 weeks' rent (annual rent under £50,000) or 6 weeks' (£50,000 or more).
- Protect it within 30 days of receiving it in DPS, mydeposits or TDS (custodial or insured).
- Give the prescribed information within 30 days: the scheme, how to get the deposit back, what to do in a dispute. Each scheme provides a form.
- Keep evidence of condition: a check-in inventory with photos, signed or acknowledged by the tenant.
- At the end, agree deductions and repay within 10 days of agreement, or use the scheme's free dispute service.
Deposit protection scheme: custodial or insured?
| Custodial | Insured | |
|---|---|---|
| Who holds the money | The scheme | You or your agent |
| Cost to landlord | Free | Membership or per-deposit fee |
| Approved schemes | Deposit Protection Service, mydeposits, Tenancy Deposit Scheme | |
If a deposit was not protected, or was protected late
- A tenant (or former tenant) can claim in the county court. The court must award 1–3 times the deposit and order it to be protected or repaid (Housing Act 2004 s214). Late protection does not remove the breach.
- GOV.UK's guide to the Renters' Rights Act says landlords cannot gain possession if they have not properly protected the deposit. Returning or properly protecting it matters before you serve Form 3A.
- Deposit claims are separate from rent repayment orders, which go to the tribunal for different offences.
Information, not legal advice. If you have received a letter before claim about a deposit, take advice from a solicitor promptly. We can refer you to an SRA-regulated firm and may receive a referral fee (how we make money).
Deposits and the new rules from 1 May 2026
The deposit rules continue for assured periodic tenancies. Rent in advance is now limited to one month (or 28 days) and only after signing, so you cannot use extra rent in advance instead of a larger deposit. The new written information must state the deposit amount. See the written statement guide.