How to protect a tenancy deposit, and what happens if you are late

The three schemes

In England a deposit for an assured tenancy must be protected in a government-approved scheme:

• Deposit Protection Service (DPS)
• mydeposits
• Tenancy Deposit Scheme (TDS)

Each offers a custodial option (the scheme holds the money, free to the landlord) and an insured option (you or your agent hold it and pay a fee). The rules are the same either way.

Within 30 days

From the day you receive the deposit, you have 30 days to:

1. protect it in a scheme; and
2. give the tenant, and anyone who paid the deposit for them (a parent, for example), the prescribed information.

The prescribed information includes the address of the home, the amount, how and where it is protected, the scheme's contact details and its dispute service, your name and contact details, any third party who paid, when you may keep some or all of it, how to ask for it back, what to do if you cannot be reached at the end, and how disputes are settled. Most schemes produce a certificate and a form that cover this; sign it and keep proof you gave it.

How much

The cap is unchanged by the Renters' Rights Act: five weeks' rent where the annual rent is under £50,000, six weeks above that. Anything over the cap is a prohibited payment under the Tenant Fees Act 2019.

If you are late, or never did it

The tenant (or a former tenant) can apply to the county court. If it finds the deposit was not protected, or the prescribed information not given, in time, the court must order you to pay them between one and three times the deposit, within 14 days. It can also order the deposit to be repaid or protected.

Since 1 May 2026, the consequences for getting the home back are wider. Until the deposit has been returned (in full, or with deductions you both agree) or the tenant's court claim is decided, withdrawn or settled, the court cannot make a possession order on any ground except ground 7A and ground 14 (serious anti-social behaviour). The landlord database will also ask about deposits.

If you find a mistake, act straight away: protect the deposit and give the prescribed information now, and get advice from a solicitor or landlord association about putting the rest right.

During the tenancy

If the rent changes, the deposit does not have to. If a new tenant joins or one leaves, tell the scheme and give fresh prescribed information. If you sell, the deposit moves to the buyer, who becomes responsible for it.

At the end of the tenancy

1. Compare the home with the check-in inventory and photos.
2. Propose any deductions in writing, with evidence: damage beyond fair wear and tear, cleaning to the standard at the start, unpaid rent, missing items.
3. Return the deposit within 10 days of agreeing how much the tenant gets back.
4. If you cannot agree, the scheme's free dispute service decides on the evidence. It is for you to show the loss.

Fair wear and tear is not a deduction. Agreeing a deposit deduction is always your decision, not your agent's or software's.

LevelMoves records the scheme, the reference and the protection date on the tenancy, and reminds you of the 30-day deadline.

This guide is information about the law in England, not legal advice.