What the law says
Sections 213 and 214 of the Housing Act 2004 require landlords to protect a tenancy deposit in a government-approved scheme, and to give the tenant the prescribed information about it, within 30 days of receiving the deposit.
Since 1 May 2026, when the Renters' Rights Act 2025 turned assured shorthold tenancies into assured periodic tenancies, these rules apply to deposits taken for assured tenancies. A deposit already protected stays in its scheme.
The deposit amount must also appear in the written statement of terms you give a new tenant before the tenancy is agreed.
The approved schemes
- Deposit Protection Service (DPS)
- mydeposits
- Tenancy Deposit Scheme (TDS)
Each offers a custodial option, where the scheme holds the money, and an insured option, where you hold it and pay a fee.
How much you can take
| Payment | Most you can take |
|---|---|
| Deposit, annual rent under £50,000 | 5 weeks' rent |
| Deposit, annual rent £50,000 or more | 6 weeks' rent |
| Holding deposit to reserve the property | 1 week's rent |
The caps come from the Tenant Fees Act 2019. You can't ask for rent before the tenancy is agreed.
What to do and when
| Step | Deadline |
|---|---|
| Protect the deposit in an approved scheme | Within 30 days of receiving it |
| Give the tenant the prescribed information | Within 30 days of receiving the deposit |
| Return the deposit once you agree the amount | Within 10 days of agreeing |
If you don't protect it
A tenant can take you to court, which can order you to pay them between one and three times the deposit. The same applies if you protect it but don't give the prescribed information in time.
It also affects possession. Section 21 no-fault eviction was abolished on 1 May 2026, so you can only end a tenancy through a Section 8 notice on a legal ground and, if the tenant doesn't leave, a court order. The court won't make a possession order unless the deposit was protected and the prescribed information given, the deposit has been returned, or any claim the tenant brought about it has been settled.
What changed in 2026
From 1 May 2026 tenancies became periodic, so there are no more fixed-term renewals. Protect the deposit once at the start; it stays protected for the whole tenancy. The deposit amount must now also appear in the written statement of terms.
How LetRecord helps
Add the tenancy and deposit dates and LetRecord starts both 30-day clocks. Upload the scheme confirmation and the prescribed information to turn the rows green.
Common questions
What happens if I miss the 30-day deadline?
Protect the deposit and give the prescribed information as soon as you can. The tenant can still claim one to three times the deposit, and you can't get a possession order until it is put right or the deposit is returned.
Can I take a bigger deposit for a pet?
Not above the cap. Any extra for a pet has to fit within the five or six weeks' limit.
What if the tenant and I disagree about deductions?
Each approved scheme offers free dispute resolution. The money that isn't in dispute should be returned within 10 days of agreeing it.
Do I need to re-protect a deposit protected before May 2026?
No. A deposit already protected stays in its scheme when the tenancy became periodic.
Official sources
This guide explains the rules in general terms and is not legal advice.
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