Tenancy deposit protection rules: a guide for letting agents in England

Deposit protection is one of the oldest duties in lettings, and still one of the easiest to get wrong. A deposit protected a day late, or prescribed information that never reached the tenant, can cost a landlord between one and three times the deposit.

This guide covers the rules for assured periodic tenancies in England, which is almost every new private tenancy since 1 May 2026. Checked against gov.uk on 16 September 2026.

The rules in one table

The three schemes

In England and Wales, deposits must go into one of:

• the Deposit Protection Service
• mydeposits
• the Tenancy Deposit Scheme

Each offers a custodial option, where the scheme holds the money, and insured options, where the landlord or agent holds it and pays a fee to insure it. Choose once as an agency and apply it consistently, so nobody has to remember which deposit went where.

Step by step for a new tenancy

1. Work out the cap. Multiply the monthly rent by 12 for the annual rent, then check the 5 or 6 week limit. Our deposit cap calculator does it in seconds.
2. Take the deposit and note the date received. The 30-day clock starts then.
3. Protect it in your chosen scheme.
4. Serve the prescribed information within the same 30 days, and keep proof of service.
5. Record the scheme reference on the tenancy so anyone in the office can find it.

At the end of the tenancy

1. Inspect against the check-in inventory and note any damage beyond fair wear and tear.
2. Propose deductions in writing, with evidence.
3. Return the deposit within 10 days of both sides agreeing the amount.
4. If you cannot agree, use the scheme's free dispute resolution service rather than holding the money.

Where agencies get caught out

• Day 31. The deadline runs from when the deposit was received, not the move-in date.
• Prescribed information not served, or served without proof.
• Deposits over the cap, often when rent is agreed late and the deposit was calculated on an earlier figure.
• Renewals and changes of tenant that were not reflected in the scheme.
• Slow returns that turn a small deduction into a complaint.

What happens if a deposit is not protected

If a deposit is not protected, or the prescribed information is not given, the tenant can apply to court. The court can order the landlord to pay compensation of between one and three times the deposit, and to protect or repay it. A landlord in this position is also in a weaker position if they later need to take the property back.

After the Renters' Rights Act

The Act changed tenancies around the deposit rather than deposit protection itself:

• Rent cannot be taken before the tenancy agreement is signed, and no more than one month between signing and the start. See advertising a let under the new rules.
• Tenancies are periodic, so there is no fixed end date. Deposits are returned when a tenancy actually ends, which can be at two months' notice.

For the rest of the recurring duties on a let, see our compliance checklist for letting agents.

How Letfold helps

Letfold connects to the Tenancy Deposit Scheme, and each tenancy keeps its documents, dates and notes on one record, so the deposit reference and the proof of prescribed information are where the next person will look.

Frequently asked questions

How long does a landlord have to protect a deposit in England?

30 days from receiving it, and the prescribed information must be given within the same 30 days.

What is the maximum deposit for a rented home?

Five weeks' rent where the annual rent is under £50,000, and six weeks' rent where it is £50,000 or more.

How quickly must a deposit be returned?

Within 10 days of the landlord and tenant agreeing how much the tenant gets back.

Does a holding deposit need to be protected?

Not while it is a holding deposit. Once the tenancy starts and it becomes part of the deposit, it must be protected.

What if the landlord and tenant disagree about deductions?

Use the scheme's free dispute resolution service. The scheme decides based on the evidence both sides provide.

Sources

Checked on 16 September 2026:

• Tenancy deposit protection (gov.uk)
• Tenant Fees Act amended by the Renters' Rights Act 2025 (gov.uk)
• Guide to the Renters' Rights Act (gov.uk)

This article is general information, not legal advice.