Tenancy deposit protection: the landlord's rules

Deposit protection means placing your tenant's deposit in one of the three government-authorised schemes, meeting the scheme's initial requirements and giving the tenant the prescribed information, all within 30 days of receiving the money. Since 1 May 2026 the rules cover all assured tenancies, not just assured shorthold tenancies, and getting them wrong stops a court making a possession order on most Section 8 grounds.

That makes deposit protection the most important item on the landlord compliance checklist if you ever need to end a tenancy.

What the deposit protection rules require

The rules are in the Housing Act 2004, sections 212 to 215 and Schedule 10, as amended by the Renters' Rights Act 2025 from 1 May 2026. You must:

1. protect the deposit in an authorised scheme from the moment you receive it;
2. meet the scheme's initial requirements within 30 days of receiving it;
3. give the tenant, and anyone who paid the deposit on the tenant's behalf, the prescribed information within 30 days;
4. take money only: non-money deposits are banned.

The Tenant Fees Act 2019 caps the deposit:

Annual rent	Maximum deposit
Under £50,000	5 weeks' rent
£50,000 or more	6 weeks' rent

For example, with rent of £300 a week (£15,600 a year), the most you can take is 5 × £300 = £1,500.

The three deposit protection schemes

There are three authorised deposit protection schemes in England:

• the Deposit Protection Service (DPS);
• MyDeposits, which also holds deposits formerly with Capita;
• the Tenancy Deposit Scheme (TDS).

The DPS custodial scheme is free to use, according to a commercial landlord guide from September 2026. Check each scheme's current fees and terms on its own website before you choose. You must tell the tenant which scheme you used and how its dispute service works as part of the prescribed information.

Deposit protection deadlines: a worked example

Suppose your tenant pays the deposit on Monday 2 November 2026.

Task	Deadline
Deposit held in an authorised scheme	From the moment you receive it
Scheme's initial requirements met	By Tuesday 1 December 2026
Prescribed information given to the tenant and anyone who paid for them	By Tuesday 1 December 2026

We count the day you receive the money as day one, which gives the earlier, safer date. In practice there is no reason to wait: protect the deposit the day it arrives, and send the prescribed information as soon as the scheme confirms it.

Watch out: If a parent, guarantor or employer paid the deposit for the tenant, they must get the prescribed information too.

What happens if you don't protect a deposit?

The tenant, or a former tenant, can apply to the court. If the court finds you didn't protect the deposit, didn't meet the scheme's initial requirements in time, or didn't give the prescribed information, it must order you to:

• pay the tenant at least 1 and no more than 3 times the deposit, within 14 days; and
• repay the deposit, or pay it into a custodial scheme (the court may make this order if the tenancy has ended).

Former tenants can bring a claim after they have moved out, so the risk doesn't end with the tenancy.

Does an unprotected deposit stop an eviction?

Yes. Under section 215 of the Housing Act 2004, as substituted on 1 May 2026, the court may make a possession order only if:

1. the deposit is held in an authorised scheme;
2. the scheme's initial requirements have been met, "whether or not within the period" of 30 days; and
3. the prescribed information has been given.

Situation	Can the court make a possession order?
Protected, initial requirements met, prescribed information given	Yes, if the ground is proved
Protected or prescribed information given late	Appears so, on our reading of section 215; you can still face a 1 to 3 times claim
Deposit taken but not protected	No, except on Ground 7A or Ground 14
Deposit returned in full, or with agreed deductions	Yes, the bar lifts
Tenant's deposit claim decided, withdrawn or settled	Yes, the bar lifts
A non-money deposit was taken	No, until it is returned

Four points to keep in mind:

• The bar applies to the court order, not the notice. You can still serve a valid Section 8 notice; fix the deposit before the hearing.
• The exceptions are Ground 7A (serious crime) and Ground 14 (antisocial behaviour).
• GOV.UK says that if you still hold the deposit at the possession hearing, you must show it is protected and the prescribed information was given.
• The rules don't apply to legacy assured tenancies that were not assured shorthold tenancies before 1 May 2026.

The reading that late protection cures the bar is our interpretation of the wording; GOV.UK hasn't confirmed it. If a claim is likely to be defended, speak to a solicitor before you rely on it.

Tenancy deposit protection checklist

• Check the deposit is within the 5-week (or 6-week) cap.
• Take money only, never a non-money deposit.
• Protect it in the DPS, MyDeposits or TDS the day you receive it.
• Meet the scheme's initial requirements within 30 days.
• Give the prescribed information to the tenant and anyone who paid, within 30 days.
• Keep the scheme certificate and proof of when you gave the prescribed information.
• Before any possession claim, confirm all three section 215 conditions are met.

What to do next

Add each deposit's 30-day deadline to ValidNotice's free compliance reminders. Then read the prescribed information guide, which includes a checklist template, and our guide to deposit deductions for rent arrears for the end of the tenancy.