Deposit Protection Schemes: A UK Landlord’s Guide (2026)

Updated July 2026 for the Renters’ Rights Act. If you take a deposit on an assured tenancy in England, you must protect it in a government-backed scheme and give the tenant the prescribed information — get this wrong and you can be ordered to pay up to three times the deposit. This guide covers the deposit cap, the three schemes, your deadlines, and what changed under the Renters’ Rights Act.

Key takeaways

• The deposit is capped at five weeks’ rent (six weeks where annual rent is £50,000 or more).
• You must protect it in one of three schemes within 30 days and serve the prescribed information.
• Failure can mean a court order to repay the deposit plus one to three times its value.
• Rent in advance is now capped at one month, and you cannot take a separate pet deposit.

The three deposit protection schemes

You must use one of the three government-approved schemes: the Deposit Protection Service (DPS), MyDeposits, or the Tenancy Deposit Scheme (TDS). Each offers two options:

• Custodial — you hand the deposit to the scheme to hold, usually free.
• Insured — you keep the deposit and pay the scheme to insure it.

Your deadlines and duties

1. Protect the deposit in a scheme within 30 days of receiving it.
2. Give the tenant (and any guarantor) the prescribed information and the scheme’s leaflet within the same 30 days.
3. At the end of the tenancy, agree deductions or use the scheme’s free dispute resolution if you can’t agree.

What happens if you don’t protect it

If you fail to protect the deposit or serve the prescribed information, the tenant can take you to court, which can order you to repay the deposit and pay a penalty of one to three times its value. Note that, since Section 21 has been abolished, the old link between deposit protection and serving a Section 21 notice no longer applies — but the financial penalty for non-protection remains, so compliance is essential.

What changed under the Renters’ Rights Act

Deposit protection itself is unchanged, but two related limits matter: rent in advance is capped at one month, so you can’t use a large upfront payment in place of a bigger deposit, and you cannot take a separate pet deposit — recover pet damage from the standard deposit or your landlord insurance. See the Renters’ Rights Act guide for the wider picture.

Frequently asked questions

How much deposit can I take?

Five weeks’ rent, or six weeks where the annual rent is £50,000 or more.

How long do I have to protect it?

30 days from receiving it — and you must serve the prescribed information within the same period.

Can I take a pet deposit?

No. There is no separate pet deposit; recover any pet damage from the standard deposit or your landlord insurance.

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Written by the Landlords Portal team — experienced UK landlords covering the private rented sector. This article is general information, not legal advice.