Key facts at a glance
- →Legislation: Housing Act 2004, ss.212–215
- →Deadline: Protect the deposit AND serve Prescribed Information within 30 days of receiving it
- →Applies to: All assured shorthold tenancies in England and Wales where a deposit is taken
- →Penalty: Court order of 1–3× the deposit amount, plus the deposit must be returned
- →Deposit cap: 5 weeks’ rent (annual rent below £50,000) or 6 weeks’ rent (annual rent £50,000+)
Why deposit protection is required
The Housing Act 2004 introduced compulsory deposit protection because tenancy deposit disputes were one of the most common sources of conflict between landlords and tenants. Before the legislation, landlords held deposits without oversight and tenants had no reliable route to recover them at the end of a tenancy.
The scheme applies to deposits taken on assured shorthold tenancies (ASTs) in England and Wales. Since virtually all private residential tenancies in England are ASTs, the requirement applies to the overwhelming majority of landlords.
The 30-day deadline
Section 213 of the Housing Act 2004 requires the landlord to protect the deposit in an authorised scheme and to give the tenant the Prescribed Information — both within 30 days of receiving the deposit.
The 30 days runs from when the landlord (or their agent) actually receives the money — not from the tenancy start date. If a tenant pays the deposit before moving in, the clock starts on receipt.
Protecting late does not remedy the breach. A court can still award compensation for failure to protect within 30 days, even if the landlord protects the deposit before any claim is made.
Prescribed Information
Protecting the deposit is only half the obligation. Within the same 30-day window, the landlord must also serve Prescribed Information on the tenant and any “relevant person” (typically a guarantor or anyone who paid the deposit on the tenant’s behalf).
The Prescribed Information must include:
- →The address of the tenancy
- →The amount of the deposit
- →The name and contact details of the scheme holding the deposit
- →The scheme’s dispute resolution procedure
- →The circumstances in which all or part of the deposit may be retained
- →How to apply to get the deposit back
All three approved schemes generate a Prescribed Information document for landlords to serve. The simplest approach is to download and serve the scheme’s own PI document immediately after protecting.
The three government-approved schemes
| Scheme | Types offered |
|---|---|
| Tenancy Deposit Scheme (TDS) | Both |
| Deposit Protection Service (DPS) | Both |
| MyDeposits | Both |
Custodial vs insured schemes
All three approved schemes offer two protection types. The choice affects where the money is held during the tenancy.
Custodial (free)
The scheme holds the deposit money for the duration of the tenancy. Free to use. Deposit is returned directly by the scheme at the end of the tenancy once both parties agree. Recommended for landlords who prefer not to hold the money themselves.
Insured (fee-based)
The landlord holds the deposit money during the tenancy and pays a fee to the scheme for insurance cover. Faster access to the money during the tenancy, but the landlord is responsible for returning it at the end. The fee is typically 1–3% of the deposit amount per year.
Deposit caps (Tenant Fees Act 2019)
The Tenant Fees Act 2019 caps the deposit a landlord can take. Accepting more than the cap is a prohibited payment and carries a civil penalty of up to £5,000.
| Annual rent | Maximum deposit |
|---|---|
| Below £50,000 | 5 weeks’ rent |
| £50,000 or above | 6 weeks’ rent |
Penalties for non-compliance
Under section 214 of the Housing Act 2004, if a landlord fails to protect the deposit or fails to serve Prescribed Information within 30 days, the tenant can apply to the county court. The court must then order the landlord to pay the tenant a sum equivalent to 1 to 3 times the original deposit amount. The level within that range is at the judge’s discretion based on the seriousness of the breach.
Note: Section 21 notices (which previously could not be served on an unprotected deposit) have been abolished by the Renters’ Rights Act 2025 from 1 May 2026. The financial penalty under section 214 remains fully in force.
Common mistakes
Protecting after the 30-day deadline
Court can award 1–3× the deposit to the tenant even if you protect it late. Lateness is not cured by eventual protection.
Protecting but not serving Prescribed Information
The penalty (1–3× deposit) applies to failure to serve PI, not just failure to protect. Both are required within 30 days.
Not re-protecting on renewal
A statutory periodic tenancy arising automatically at the end of a fixed term is a new tenancy. Failure to re-protect (or confirm protection) can trigger a fresh penalty claim.
Wrong tenant name on the scheme record
If the name on the scheme does not match the tenancy agreement, prescribed information may be invalid.
Taking more than the permitted deposit
Under the Tenant Fees Act 2019, deposits are capped. Accepting more than the cap is a prohibited payment — a civil penalty of up to £5,000.
Track deposit protection in LetSense
LetSense records protection status, scheme reference, and protection date for every tenancy. Compliance tab shows unprotected deposits in red so nothing slips through.
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