Deposits
Protect a tenancy deposit in an authorised scheme within 30 days
Any money deposit for an assured tenancy must be protected in a government-approved scheme from receipt, with the scheme's initial requirements completed within 30 days. Deposits can only be money.
- Status
- In force since 6 April 2007
- Penalty
- See below
- Topic
- Deposits
Who it applies to
A tenancy deposit is received for an assured tenancy in England (including deposits paid by a third party).
What you must do
From receipt, deal with the deposit under an authorised scheme (Deposit Protection Service, MyDeposits or Tenancy Deposit Scheme; custodial or insured) and complete the scheme's initial requirements within 30 days beginning with the date of receipt. Do not take a deposit of property other than money. Return the deposit within 10 days of agreeing deductions at the end of the tenancy (scheme rule per GOV.UK).
- Deadline
30 days beginning with the date the deposit is received (HA 2004 s.213(3)); this is often before the tenancy starts. No schema event exists for deposit receipt.
Evidence to keep
- Scheme protection certificate showing date protected
- Deposit receipt showing date received
If you do not comply
- Other consequences
- Tenant (or third-party payer) can apply to the county court during or after the tenancy: court must order repayment or payment into a custodial scheme within 14 days and award 1-3x the deposit (HA 2004 s.214). Court cannot make a possession order (except on Grounds 7A or 14) unless the deposit is held in a scheme and its initial requirements have been met (late compliance counts), the deposit has been returned or deductions agreed, or a s.214 claim has been decided, withdrawn or settled (new s.215). Non-money deposits must be returned before any possession order.
The law
- Housing Act 2004, s.213 (requirements relating to tenancy deposits)legislation.gov.uk
- Housing Act 2004, s.214 (proceedings relating to tenancy deposits)legislation.gov.uk
- Renters' Rights Act 2025, s.26 (tenancy deposit requirements: applies to assured tenancies and substitutes new s.215 sanctions)legislation.gov.uk
Official guidance
Notes
Since 1 May 2026 the scheme rules cover all assured tenancies, not only shortholds. GOV.UK 'Deposit protection schemes and landlords' still refers to assured shorthold tenancies; the statute as amended and the GOV.UK tenant page reflect the change.
Other deposits rules
2 rules- Cap tenancy deposits at 5 weeks' rent (6 weeks if annual rent is £50,000 or more)In force since 1 June 2019Fine up to £5,000
A tenancy deposit cannot exceed 5 weeks' rent where annual rent is under £50,000, or 6 weeks' rent where annual rent is £50,000 or more. Any excess is a prohibited payment.
- Give the deposit prescribed information within 30 daysIn force since 6 April 2007
Within 30 days of receiving a deposit, give the tenant and anyone who paid it on their behalf the prescribed information about the scheme and the deposit, in the prescribed form or substantially the same.