Tenancy Deposit Protection
The legal requirement to place a tenant's deposit in a government-approved scheme within 30 days and serve prescribed information. Deposits are capped at five weeks' rent for most tenancies.
Any deposit taken on an assured tenancy in England must be protected in one of the government-approved schemes (custodial or insured) within 30 days of receipt. Within the same 30 days you must serve the prescribed information and the scheme's leaflet on the tenant.
The caps
Under the Tenant Fees Act 2019, deposits are capped at five weeks' rent where the annual rent is under £50,000, and six weeks' rent at £50,000 or more. Pet damage comes out of the ordinary deposit; landlords cannot require separate pet insurance or pet fees.
Why compliance is critical
Getting deposit protection wrong is expensive in three ways:
- Courts can award the tenant one to three times the deposit as a penalty.
- Non-compliance can undermine possession claims, so the deposit failure resurfaces exactly when you need the property back.
- In a deposit dispute, scheme adjudicators start from the position that the money belongs to the tenant. Your check-in inventory, photos, and receipts have to earn every deduction, allowing for fair wear and tear.
Return of the deposit at the end of a tenancy is free to dispute through each scheme's resolution service, so evidence quality matters more than argument.