Landlord deposit protection obligations
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Quick answer: England landlords letting on assured tenancies must protect tenant deposits in an approved TDP scheme within 30 days, serve prescribed information, and return agreed deposits within 10 days — failure can trigger penalties of one to three times the deposit and block possession claims.
Protecting tenancy deposits correctly is one of a landlord's clearest legal duties — and one of the most common compliance failures. Under the Renters' Rights Act 2025, deposit breaches now affect possession rights through Section 8 as well as the former Section 21 route. This guide covers landlord obligations in England. It is information only, not legal advice.
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Read the full mortgages & first homes guide →Primary source: www.gov.uk/deposit-protection-schemes-and-landlords
Protecting the deposit on time
When you receive a tenancy deposit for an assured tenancy, register it with an approved scheme within 30 days. You can use a custodial scheme where the scheme holds the money, or an insured scheme where you hold the deposit and pay the scheme to insure it.
Holding deposits before a tenancy starts do not need protecting, but the money becomes a deposit once the tenant moves in. If a third party paid the deposit, you must still protect it.
Prescribed information and disputes
You must give the tenant prescribed information about the scheme, the property and how the deposit is protected. Keep proof of service. Tenants can raise disputes through the scheme's free adjudication service if they disagree with proposed deductions.
At checkout, agree deductions promptly. Return the agreed balance within 10 days. If there is a dispute, transfer the disputed amount to the scheme for safekeeping until adjudication.
Consequences of non-compliance
Tenants can apply to court for an order requiring protection and compensation of one to three times the deposit. The court may also require you to protect the deposit before proceeding with possession.
From 1 May 2026 under the Renters' Rights Act 2025, a court generally cannot grant possession on most grounds unless the deposit is protected and prescribed information has been served — even if protection was late.
Common questions
Can I deduct for redecoration at every change of tenant?
You can deduct for damage beyond fair wear and tear, but not for ordinary deterioration. Document condition at check-in and check-out with dated photos and an agreed inventory.
Do deposit rules apply to lodgers?
Lodgers who share accommodation with a resident landlord usually have a licence, not an assured tenancy, and TDP rules may not apply. Check the tenancy type before taking a deposit.
What about deposits taken before 1 May 2026?
Existing deposits must already be protected. If they are not, remedy the breach before seeking possession — late protection may not cure all consequences.