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A tenancy deposit in England is capped at five weeks' rent where the annual rent is under £50,000. It must be protected in one of three government-approved schemes within 30 days of the landlord receiving it, and the tenant must be given the prescribed information in the same window. At the end of the tenancy, deductions are allowed only for damage beyond fair wear and tear, cleaning, unpaid rent or other breaches, and only with evidence.
This guide covers the rules at the time of writing. It is general information and not legal, tax or financial advice. If a deposit has gone wrong, speak to a solicitor before you serve any notice.
The cap
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 |
To find a week's rent from a monthly rent, multiply by 12 and divide by 52. Anything above the cap is a prohibited payment and must be repaid. The cap covers the whole security deposit, so a separate "pet deposit" on top of five weeks' rent is not allowed.
Since 1 May 2026 the deposit sits alongside a separate limit on rent in advance: nothing before the agreement is signed, and usually no more than one month's rent after signing.
Holding deposits
A holding deposit reserves a property while references are checked. It is capped at one week's rent. GOV.UK says it does not need protecting while it holds the property. When the tenancy goes ahead, it is normally refunded or credited against the first rent or the deposit. The Act sets out when a landlord can keep it, for example where the applicant gave false or misleading information or pulled out, and the landlord must then explain in writing why it was kept. If you are unsure, return it.
Protection: the three schemes
GOV.UK lists three approved schemes in England:
- Deposit Protection Service (DPS)
- mydeposits
- Tenancy Deposit Scheme (TDS)
Each offers two types of protection. In a custodial scheme the money is paid to the scheme and held until the end of the tenancy; the DPS offers this free. In an insured scheme the landlord or agent keeps the money and pays a fee for the scheme's insurance backing. Agents who hold deposits usually use an insured scheme, and must also belong to a client money protection scheme.
Whichever you choose, the deposit must be protected within 30 days of receipt.
The prescribed information
Within the same 30 days, the tenant must receive the prescribed information. The Housing (Tenancy Deposits) (Prescribed Information) Order 2007 lists it, including:
- the scheme's name and contact details, and its leaflet
- the deposit amount and the property address
- the landlord's or agent's contact details
- how the tenant applies for the deposit back, and what happens if a party cannot be contacted
- the circumstances in which deductions can be made, by reference to the tenancy
- how disputes are resolved through the scheme
- a signed confirmation that the information is accurate.
Keep proof of when and how you served it. A deposit that is protected but without the prescribed information is still a breach.
What happens if you do not protect it
GOV.UK says a court can order the landlord to repay the deposit or protect it within 14 days, and to pay the tenant up to three times the deposit. At the time of writing, an unprotected deposit can also stand in the way of possession: the government's guidance for landlords says the deposit must have been protected properly, or returned, before a court will grant a possession order on most grounds.
Returning the deposit
At the end of the tenancy, the landlord and tenant agree how much is returned. Once agreed, GOV.UK says the deposit must be returned within 10 days.
Deductions are allowed for:
- damage beyond fair wear and tear
- cleaning needed to return the property to its condition at check-in
- unpaid rent
- other breaches of the tenancy, such as missing keys or items.
Fair wear and tear is the decline you would expect from ordinary use. A carpet thinned after four years in a hallway is wear; a burn is damage. Age, quality, length of tenancy and the number of occupiers all count. A landlord cannot claim the cost of new for old: a deduction reflects the remaining life of the item.
Disputes
If the landlord and tenant cannot agree, either can raise a dispute with the scheme. The disputed amount stays protected until it is resolved. Each scheme offers free alternative dispute resolution, where an adjudicator decides on the written evidence.
The evidence is what wins or loses:
- An inventory and check-in report, dated, detailed and photographed, signed or acknowledged by the tenant.
- Inspection reports during the tenancy, showing when any damage appeared.
- A check-out report in the same format as the check-in.
- Invoices or quotes for the work claimed.
- Correspondence, including the tenant's own reports of problems.
Furnished lets carry more items and more scope for dispute, so our guide to furnishing a let covers inventories in detail.
Common mistakes
- Taking more than the cap, often by adding a pet or furniture deposit on top of five weeks' rent.
- Protecting late, because the 30 days were counted from the move-in date rather than the date the money was received.
- Forgetting the prescribed information, or serving it without the landlord's signed certification.
- Losing track after a change. If the tenancy changes, for example a sharer leaves and another joins, check the protection and the prescribed information still match.
- A thin check-in report. Without dated photographs, an adjudicator has little to weigh against the tenant's account.
- Charging new for old. Claiming the full cost of a replacement for an item that was already several years old.
How we handle deposits
In Bournemouth, Poole and Christchurch we protect each deposit for the lets we manage, serve the prescribed information, and run the inventory, check-in and check-out so the evidence is in place. At the end of a tenancy we propose deductions in writing with photographs and invoices, and deal with the scheme if the tenant disputes them. Our guide to property management explains the rest of the year, and the landlord legal checklist lists the other duties. See our property management service for the detail.
