Deposit protection: the 2026 landlord's guide
Deposit protection survived the Renters' Rights Act intact – and the penalties for getting it wrong still bite as hard as ever. The complete picture for landlords in England:
The 30-day rule
Within 30 days of receiving a tenancy deposit you must do two things: protect it in a government-authorised scheme, and serve the tenant with the prescribed information – the statutory details of where the deposit is held and how disputes work, usually alongside the scheme's certificate and leaflet. Both steps, both inside 30 days. Serving one without the other is non-compliance.
Custodial vs insured schemes
Three authorised providers operate in England, each offering two models. Custodial: the scheme holds the money; free to use. Insured: you hold the money and pay a fee for the scheme to insure it. Custodial is the simpler discipline for self-managing landlords – the money sits outside your accounts and the end-of-tenancy process is built in.
The five-week cap
The Tenant Fees Act caps deposits at five weeks' rent where annual rent is under £50,000 (six weeks above). Weekly rent is the monthly figure × 12 ÷ 52. Taking more is a prohibited payment – our generator checks your figure against the cap automatically.
What non-compliance costs
Fail to protect in time, or fail to serve the prescribed information, and the tenant can claim one to three times the deposit in compensation – per tenancy, and historically per renewal. Under the old law it also blocked Section 21; under the new regime, deposit failures still undermine possession claims and sit alongside the Act's civil penalties. This is the highest-stakes piece of paperwork in the whole tenancy.
End of tenancy
Agree deductions against the inventory, return the balance promptly (schemes expect return within 10 days of agreement), and use the scheme's free dispute resolution where you cannot agree – the adjudicator decides on the documents, which is why the signed inventory and dated photos decide most cases before they start.
Want the dates and figures worked out for you? Try the free deposit cap calculator.
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Start my agreement →Frequently asked questions
What is the prescribed information for a deposit?
The statutory set of details a landlord must give the tenant within 30 days of receiving the deposit: the scheme holding it, the amount, the property, contact details, and how the deposit can be recovered or disputed. The scheme provides a template – serve it and keep dated proof.
Do lodger deposits need protecting?
No – lodgers with a resident landlord are excluded occupiers and protection schemes do not apply, though the five-week cap does. See our lodger agreement pack.
Is there a deadline to return a deposit?
Once deductions are agreed, schemes expect payment out within 10 days. Where there is a dispute, the contested amount stays protected until adjudication concludes.