Tenancy Deposit Protection: The Rules, the Caps and the Penalties
A landlord in England who takes a deposit must protect it in a government-backed scheme within 30 days of receiving it and give the tenant the prescribed information within the same 30 days. The deposit itself is capped at five weeks' rent where the annual rent is under £50,000. At the end of the tenancy the agreed amount goes back within 10 days. A landlord who gets this wrong can be ordered by a court to pay the tenant between one and three times the deposit. This guide sets out the rules, the three schemes, the caps and what the Renters' Rights Act changed.
In this guide
The rules in one table The three schemes The prescribed information How much you can take At the end of the tenancy The penalty, and the Renters' Rights Act Checklist Frequently asked questions SourcesThe rules in one table
| Rule | Requirement | Source |
|---|---|---|
| Protect the deposit | In a government-backed scheme within 30 days of receiving it | GOV.UK; Housing Act 2004 s213 |
| Prescribed information | Given to the tenant within 30 days | Housing Act 2004 s213(6) |
| Deposit cap | Five weeks' rent if annual rent is under £50,000; six weeks if £50,000 or more | Tenant Fees Act 2019 Sch 1 |
| Holding deposit cap | One week's rent; no protection needed until it becomes the deposit | Tenant Fees Act 2019 Sch 1; GOV.UK |
| Return | Within 10 days of agreeing how much the tenant gets back | GOV.UK |
| Disputes | Deposit stays protected until settled; free adjudication | GOV.UK |
| Penalty | Court orders 1 to 3 times the deposit | Housing Act 2004 s214 |
GOV.UK, Deposit protection schemes and landlords; legislation.gov.uk, Housing Act 2004 sections 213 and 214 and Tenant Fees Act 2019 Schedule 1, all checked 3 October 2026.
The three schemes
England has three government-backed schemes: the Deposit Protection Service, MyDeposits and the Tenancy Deposit Scheme. Each offers two models:
- Custodial: the scheme holds the money, free of charge to the landlord, and repays it at the end.
- Insured: you or your agent hold the money and pay the scheme to insure it, which keeps the cash with you but costs a fee per deposit or a membership.
A self-managing landlord with one or two properties usually chooses a custodial scheme because it costs nothing. An agent will normally use its own insured membership; check which scheme and model your agent uses and ask for the certificate.
The prescribed information
Protecting the money is only half the duty. Within 30 days you must also give the tenant, and anyone who paid the deposit for them, the prescribed information: the scheme's details, how the deposit is protected, the property address, the amount, your contact details, how to apply for its return, what happens in a dispute and the circumstances in which deductions can be made. Every scheme generates a compliant form when you register the deposit; send it, keep proof of sending and keep the scheme certificate. A deposit protected on day 10 with the information never served is still a breach.
How much you can take
The Tenant Fees Act 2019 caps the deposit by reference to rent. Five weeks' rent is the monthly rent times 12, divided by 52, times 5:
| Monthly rent | Weekly rent | Maximum deposit (5 weeks) | Maximum holding deposit (1 week) |
|---|---|---|---|
| £800 | £184.62 | £923.08 | £184.62 |
| £1,000 | £230.77 | £1,153.85 | £230.77 |
| £1,200 | £276.92 | £1,384.62 | £276.92 |
| £1,500 | £346.15 | £1,730.77 | £346.15 |
| £2,000 | £461.54 | £2,307.69 | £461.54 |
Our calculation. At £4,167 a month or more the annual rent reaches £50,000 and the cap rises to six weeks. The deposit calculator works it out for any rent.
Anything above the cap is a prohibited payment. So is a separate pet deposit or fee: the cap applies whatever pets the tenant has; see the pets guide. The only other payments a landlord can take are those on the Act's permitted list, such as rent, default fees for lost keys or late rent, a capped £50 charge to vary the tenancy and utilities.
At the end of the tenancy
Agree deductions with the tenant in writing, item by item, with evidence from the check-in and check-out inventories. Once you agree, the deposit must be returned within 10 days. If you cannot agree, the deposit stays protected and either side can use the scheme's free dispute resolution, which decides on the written evidence. Deductions are allowed for damage beyond fair wear and tear, unpaid rent and cleaning back to the check-in standard; an adjudicator will not award the cost of replacing an old carpet as if it were new.
The penalty, and the Renters' Rights Act
If a deposit is not protected or the prescribed information is not given in time, the tenant can apply to court, and under section 214 of the Housing Act 2004 the court must order the landlord to pay a sum of not less than the deposit and not more than three times it. On a £1,384 deposit that is £1,384 to £4,154 on top of returning the deposit. The Renters' Rights Act 2025 amended section 214 from 1 May 2026, including transitional rules for tenancies that were assured shorthold tenancies before that date. Section 21 no longer exists, so the old rule that an unprotected deposit blocked a section 21 notice has gone; possession now depends on the section 8 grounds. The fines guide sets this alongside the other penalties.
Checklist
- Cap the deposit at five weeks' rent and the holding deposit at one week.
- Register with a scheme on the day the money arrives, not day 29.
- Serve the prescribed information and keep proof.
- Photograph and inventory at check-in, with the tenant's signature; record the alarm test on the same sheet.
- Put the 30-day and 10-day deadlines in the compliance calendar.
The Renters' Rights Act cost guide covers the wider changes, and the rental yield calculator treats an insured scheme fee as a running cost.
Frequently asked questions
How long do I have to protect a tenancy deposit?
30 days from receiving it. The prescribed information must also reach the tenant within the same 30 days.
What is the maximum deposit a landlord can take?
Five weeks' rent where the annual rent is under £50,000, and six weeks' rent where it is £50,000 or more. A holding deposit is capped at one week's rent.
What are the three deposit protection schemes?
The Deposit Protection Service, MyDeposits and the Tenancy Deposit Scheme. Each offers a custodial option, free to the landlord, and an insured option for a fee.
How quickly must I return a deposit?
Within 10 days of you and the tenant agreeing how much they will get back. If you cannot agree, the scheme's free dispute service decides.
What is the penalty for not protecting a deposit?
A court must order you to pay the tenant between one and three times the deposit, under section 214 of the Housing Act 2004.
Sources
GOV.UK: deposit protection schemes and landlords; Housing Act 2004 section 213 and section 214 as amended by the Renters' Rights Act 2025; Tenant Fees Act 2019 Schedule 1. Checked 3 October 2026. See the methodology.