Tenancy deposit protection: the complete guide
How to protect a deposit correctly, serve the prescribed information on time, and avoid penalties of up to three times the deposit.
Reviewed June 2026 · 10 min read
The deposit rules
If you take a deposit for an assured tenancy you must protect it in a government-approved scheme and provide the tenant with prescribed information about where and how it is held. The Tenant Fees Act also caps most deposits at five weeks' rent (six weeks where annual rent is £50,000 or more).
Deposit deadlines
You have 30 calendar days from receiving the deposit to both protect it and serve the prescribed information. Missing either part of this — not just protection, but the paperwork — can trigger the penalty and affect your ability to use certain possession grounds.
Prescribed information
- The amount of the deposit and the property address.
- The name and contact details of the scheme and the landlord/agent.
- How the deposit is protected and how to apply to get it back.
- The scheme's dispute resolution procedure.
- The circumstances in which deductions may be made.
Comparing the schemes
| Scheme | Custodial | Insured | Notes |
|---|---|---|---|
| DPS (Deposit Protection Service) | Yes (free) | Yes | Well-known; strong custodial option. |
| TDS (Tenancy Deposit Scheme) | Yes | Yes | Popular with agents; robust adjudication. |
| MyDeposits | Yes | Yes | Flexible insured product for landlords. |
With a custodial scheme the deposit is held by the scheme for free. With an insured scheme you keep the money but pay a fee and must hand it over if a dispute is decided against you.
Common mistakes
- Protecting the deposit but forgetting the prescribed information.
- Missing the 30-day deadline by a few days.
- Taking more than the legal cap under the Tenant Fees Act.
- Not re-serving information when required after a statutory periodic tenancy arises.
Possession implications
Historically, failure to protect a deposit blocked a Section 21 notice. With Section 21 abolished under the Renters' Rights Act, the focus shifts to penalties and to the integrity of Section 8 possession claims — but the financial penalty for non-protection remains, and returning an unprotected deposit before proceedings is often necessary.
Tenant disputes
At the end of a tenancy, if you and the tenant cannot agree deductions, the scheme's free dispute resolution service will adjudicate. Adjudicators rely heavily on evidence: a signed inventory, dated photographs and a clear schedule of condition are what win disputes. Fair wear and tear cannot be charged for.
Frequently asked questions
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