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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met (late compliance counts), the deposit has been returned or deductions agreed, or a s.214 claim has been decided, withdrawn or settled (new s.215).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

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.

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