The tenancy
Tenancies starting on or after 1 May 2026 are capped at one month's rent in advance.
The most you can take as a deposit, holding deposit and rent in advance for a tenancy in England, the date the deposit must be protected by, and what it costs if you miss it.
Tenancies starting on or after 1 May 2026 are capped at one month's rent in advance.
The Tenant Fees Act 2019 caps a tenancy deposit at five weeks' rent where the annual rent is under £50,000 and six weeks' rent where it is £50,000 or more. Weekly rent is the monthly rent multiplied by 12 and divided by 52, so a £1,200 a month tenancy has a weekly rent of £276.92 and a cap of £1,384.62. Anything above the cap is a prohibited payment that the tenant can recover, and it stops you serving a valid notice on certain grounds until it is repaid. A holding deposit is capped at one week's rent and must be refunded or credited to the first rent or deposit within seven days of the tenancy being agreed, unless the tenant withdraws, fails Right to Rent or gives false information.
| Deduction | Allowed | Notes |
|---|---|---|
| Unpaid rent | Yes | The most common and easiest to evidence |
| Damage beyond fair wear and tear | Yes | Needs a check-in and check-out inventory with photos; apportion for age of the item |
| Cleaning to the check-in standard | Yes | Only to the standard recorded at check-in; you cannot require professional cleaning |
| Missing items | Yes | Replacement value less depreciation |
| Fair wear and tear | No | Worn carpets, faded paint, small marks |
| Improvements or betterment | No | You cannot charge a tenant for a new carpet to replace a five-year-old one in full |
Schemes decide disputes on the evidence; landlords win about a third of disputed amounts in full. An inventory (£80 to £150 for a professional one) is the cheapest protection.
Five weeks' rent where the annual rent is under £50,000 and six weeks' rent where it is £50,000 or more, under the Tenant Fees Act 2019. On £1,200 a month that is £1,384.62.
Thirty days from the date you receive it, to protect it in one of the three government-approved schemes (DPS, MyDeposits, TDS) and serve the prescribed information on the tenant and anyone who paid on their behalf.
The tenant can claim between one and three times the deposit in the county court, even after the tenancy has ended, and you cannot use the mandatory possession grounds while it stays unprotected. Protecting late reduces the likely award but does not remove it.
No. The five-week cap applies whatever the tenant's circumstances, and the Renters' Rights Act does not allow a larger deposit or compulsory pet insurance. Pet damage cover on your own insurance costs £20 to £40 a year.
One month, for any tenancy created on or after 1 May 2026, and none before the tenancy agreement is signed. Older arrangements can continue to the end of that tenancy. A guarantor or rent guarantee insurance replaces the old six-months-up-front approach.
Yes, within seven days of agreeing the tenancy or deciding not to proceed, unless the tenant withdraws, fails a Right to Rent check, or gave false or misleading information that reasonably affected your decision. It is capped at one week's rent.