If you’re a landlord in England or Wales and you take a deposit, you are legally required to protect it in a government-approved tenancy deposit protection (TDP) scheme.
In England, this applied to assured shorthold tenancies (ASTs) that started on or after 6 April 2007. Since 1 May 2026, under the Renters’ Rights Act 2025, most private tenancies in England are assured periodic tenancies, and the deposit protection rules continue to apply to them and to tenancies that were ASTs before that date. In Wales, tenancies have been “occupation contracts” since 1 December 2022, and deposits must still be protected.
People Also Ask
Yes. In England, landlords must protect a deposit taken for an assured tenancy (including former assured shorthold tenancies, which became assured periodic tenancies on 1 May 2026) in a government-approved tenancy deposit scheme (TDP) within 30 days of receiving it. Deposits must also be protected for occupation contracts in Wales. This legal protection ensures deposits are safeguarded until the tenancy ends.
You can check your deposit’s protection status via the three authorised schemes in England: Deposit Protection Service (DPS), MyDeposits, and the Tenancy Deposit Scheme (TDS). You will need your postcode, surname, and tenancy start date to search. If the deposit is not protected, you can still claim it back and may be entitled to compensation.
A landlord can only keep part or all of a deposit if they prove a financial loss caused by you, such as unpaid rent, property damage beyond normal wear and tear, or breaches of the tenancy agreement.
The landlord must protect the deposit within 30 days of receipt, and it remains protected throughout the tenancy. After tenancy ends, if deductions are agreed, the deposit should be returned within 10 days. If there is a dispute, the deposit stays protected until resolved.
Landlords cannot deduct for normal wear and tear like minor paint fading. However, deductions can be made for damage such as stains, holes, or unauthorised painting that requires costly repairs or repainting.
If a deposit is not protected as required, the court can order the landlord to pay the tenant between one and three times the deposit value as compensation, in addition to returning the original deposit.
The landlord must protect your deposit in a government-approved scheme within 30 days of receiving it and must provide prescribed written information about the scheme, property, and landlord contact details.
You can only get your deposit back early if your landlord agrees in writing or your tenancy contract has a break clause. Leaving early without agreement may cause the landlord to keep some or all of the deposit for losses like unpaid rent or re-letting costs. Deposit scheme dispute resolution services help if deductions are contested.
Start by discussing with your landlord and gathering evidence like photos. If unresolved, use the free dispute resolution service offered by your tenancy deposit protection scheme, and if necessary, take the case to small claims court.
Why Deposit Protection Matters
Tenancy deposit protection helps ensure that:
- Your deposit is held safely in a government-approved scheme.
- You receive your deposit back promptly at the end of the tenancy, provided you meet the terms of your agreement.
Failing to use a TDP scheme properly can result in legal action and financial penalties, including having to repay up to three times the deposit amount
When You Must Protect the Deposit
You must place the deposit in a TDP scheme within 30 calendar days of receiving it. This rule applies even if someone else pays the deposit on behalf of the tenant (like a parent or a council scheme).
If a tenant gives you something valuable instead of money (such as a watch or a car), this is not classed as a deposit for the purposes of protection, and does not need to be protected in a TDP scheme.
Which Schemes Can You Use?
If your property is in England or Wales, you can register the deposit with any of these approved schemes:
Scotland and Northern Ireland have their own approved schemes and rules. See mygov.scot and nidirect. In Wales, the same three schemes are used for occupation contracts; see GOV.WALES.
Each scheme offers two types of protection:
- Custodial Scheme: The scheme holds the deposit for free.
- Insured Scheme: You or your agent hold the deposit, but you pay a fee to insure it through the scheme.
Important: who holds the money depends on the type of scheme. With a custodial scheme, you pay the deposit to the scheme and it holds it. With an insured scheme, you or your agent can keep the deposit, for example in your own account, but only if it’s protected with that scheme within 30 days and you pay the scheme’s fee. What you must not do is hold a deposit that isn’t protected in any approved scheme.
At the End of the Tenancy
Once the tenancy ends and both sides agree on how much should be returned, the deposit must be paid back to the tenant within 10 days.
If there is a dispute, the deposit remains protected until it’s resolved, either by agreement, through dispute resolution offered by the scheme, or via the courts.
If you’ve used an insured scheme and a dispute arises, you must transfer the deposit to the scheme until the matter is settled.
Holding Deposits: Know the Difference
If you collect a holding deposit before the tenancy begins (to ‘hold’ the property), this does not need to be protected immediately. However, once the tenancy starts and the holding deposit becomes a tenancy deposit, you must protect it as described above.
Final Tip for Landlords
Make sure you also provide your tenants with information about where their deposit is protected, this is a legal requirement. Keeping proper records and meeting deadlines can save you costly legal trouble.
Useful Resources:
- Tenancy agreements
- Tenancy deposit protection
- Deposit Protection Service
- My Deposits
- Tenancy Deposit Scheme
Cost of Living Support Available:
- Household Support Fund (England)
- Cost of Living Payments
- Support for Mortgage Interest (SMI)
- Mortgage Guarantee Scheme
- Council Tax Reduction
Other Support Available: