Quick Answer
Landlords in England and Wales must protect a tenant’s deposit in a government-approved scheme within 30 days of receiving it and provide the tenant with the prescribed information in the same window. Missing this deadline can result in a penalty of one to three times the deposit amount, payable to the tenant.
The Three Approved Schemes
- Deposit Protection Service (DPS), offering both custodial and insured options
- mydeposits, offering both custodial and insured options
- Tenancy Deposit Scheme (TDS), offering both custodial and insured options
A custodial scheme holds the deposit directly, so you transfer the funds and the scheme looks after them for the tenancy’s duration. An insured scheme lets you hold the deposit yourself, but you pay a fee to insure it against non-return, meaning you remain responsible for repaying it correctly at the end of the tenancy.
What You Must Do Within 30 Days
- Choose one of the three approved schemes
- Protect the full deposit amount within 30 days of receiving it
- Provide the tenant with the prescribed information, including scheme details and how disputes are resolved
- Keep evidence that both steps were completed on time
The Deposit Cap
Under the Tenant Fees Act 2019, a deposit cannot exceed 5 weeks’ rent for properties with an annual rent under £50,000, or 6 weeks’ rent above that threshold. You also cannot take a separate pet deposit. Any damage caused by a pet should be recovered from the standard deposit or through landlord insurance instead.
What Happens If You Miss the Deadline
If you fail to protect the deposit or fail to provide the prescribed information within 30 days, the tenant can take you to court. A judge can order you to repay the deposit and pay an additional penalty of between one and three times its value. This applies even if you protect the deposit late, since simply completing the step after the deadline does not remove the breach.
What Changed Under the Renters’ Rights Act 2025
Deposit protection itself remains unchanged, but the wider legal context shifted. Section 21 “no fault” evictions were abolished, which removed the old link between deposit protection compliance and serving a Section 21 notice. The financial penalty for non-protection remains fully in force regardless. Two related limits also matter: rent in advance is now capped at one month, so a large upfront payment cannot substitute for a bigger deposit.
At the End of the Tenancy
Agree any deductions directly with the tenant where possible. If you cannot agree, the scheme’s free dispute resolution service settles the disagreement without needing to go to court. Keep a detailed inventory and dated photographs from the start of the tenancy, since these are the most persuasive evidence in any dispute.
Building This Into Your Compliance Routine
Deposit protection sits alongside your other tenancy-start duties, including Right to Rent checks and the required compliance certificates. See our EICR checklist for landlords for how to sequence every tenancy-start requirement in one place.
Frequently Asked Questions
How long do landlords have to protect a deposit?
30 days from the date the deposit is received.
What is the penalty for not protecting a deposit?
A court can order repayment plus a penalty of one to three times the deposit amount.
Can a landlord take a separate pet deposit?
No. Pet-related damage should be recovered from the standard deposit or through landlord insurance.
What is the maximum deposit a landlord can take?
5 weeks’ rent for properties under £50,000 annual rent, or 6 weeks’ rent above that threshold.
Does the Renters’ Rights Act 2025 change deposit protection rules?
The core deposit protection rules are unchanged, though the wider tenancy framework around evictions has changed significantly.
Related Reading
This article reflects UK deposit protection regulations current as of August 2026, including the Renters’ Rights Act 2025.