Deposit Protection for UK Landlords: The Rules, the Deadlines and the Fines
Deposit compliance is still a common legal weak point. This guide covers the 30-day rules, prescribed information and consequences of late protection.
TL;DR
Deposits must be protected with an approved scheme within 30 days
Prescribed information must be served in writing within the same 30 days
Late protection can trigger fines of 1 to 3 times the deposit amount
Missing prescribed information can block a Section 8 possession claim
Tenants have up to three years after tenancy end to bring a claim
Hands exchanging keys during a tenancy handover process.
Introduction
Deposit protection has been a legal requirement since 2007. Nearly two decades later, it's still one of the most common compliance failures landlords make, and the consequences have got heavier, not lighter.
Get it wrong and a court can award the tenant up to three times the deposit amount. Do it wrong when you're also trying to make a Section 8 possession claim, and you've potentially killed the claim.
Tracking deposit protection dates across a growing portfolio is where things slip. LandoraHub records which scheme each deposit is with, the protection date and prescribed information service date, so you have the evidence if you ever need it.
The Basics
When you take a deposit from a tenant, you have 30 days to:
Register it with a government-approved tenancy deposit scheme
Give the tenant the prescribed information about where it's protected
That's it. Two steps, 30 days. The schemes are DPS (Deposit Protection Service), MyDeposits and TDS (Tenancy Deposit Scheme).
You choose between custodial and insured. Custodial means the scheme holds the money. Insured means you keep it but pay a fee to the scheme to guarantee it. Both are valid.
The Prescribed Information - What Most Landlords Get Wrong
Registering the deposit is the part most landlords do correctly. The prescribed information is where things go wrong.
Prescribed information is a specific set of details that must be given to the tenant in writing within 30 days. It includes the amount of the deposit, which scheme it's in, how to get it back, what to do if there's a dispute, and the full terms and conditions of the scheme.
It's not enough to say "your deposit is with DPS." The tenant needs all the prescribed information in writing, and you need to be able to prove they received it.
Most schemes provide a prescribed information document you can give to tenants. Use it. Don't write your own version.
💡 Keep prescribed information dated and filed from day one
LandoraHub stores deposit protection certificates and prescribed information records per tenancy with timestamped uploads.
Start free, never lose a deposit record →
What Happens If You Miss the 30-Day Window
If you fail to protect the deposit or provide prescribed information on time, a tenant can apply to court for a fine of one to three times the deposit amount.
They have three years from the end of the tenancy to make that application. It doesn't matter that the tenancy ended without any dispute. If the deposit wasn't protected correctly, the liability sits there.
Under the Renters' Rights Act, this also affects possession. A court can refuse a Section 8 possession claim if the deposit wasn't protected and the prescribed information wasn't served correctly.
The Periodic Tenancy Problem
Before 1 May 2026, many landlords let fixed-term tenancies roll into periodic tenancies without giving the deposit situation a second thought. That could be a problem.
If your deposit protection was linked to the original fixed term and you never re-confirmed the protection when the tenancy became periodic, you may have a gap. The rules here are genuinely complex and different schemes handle it differently.
If you're unsure whether your deposit protection is correctly maintained for tenancies that have been rolling for a while, it's worth checking with the scheme directly.
Deductions at the End of a Tenancy
When the tenancy ends, you have a specific timeframe to return the deposit or raise a dispute. Act slowly and the tenant can escalate through the scheme's dispute process.
Deductions need to be justified with evidence: photos, invoices, check-in and check-out inventory comparisons. Without a proper inventory, deductions are very hard to defend. "It wasn't like that when they moved in" isn't enough.
The check-in inventory is the document that makes or breaks a deduction dispute. It needs to be detailed, photographic, and signed or acknowledged by the tenant.
Frequently Asked Questions
What's the maximum deposit I can take?
Five weeks' rent where annual rent is under £50,000; six weeks' rent where annual rent is £50,000 or more.
Do I need to protect a holding deposit?
No, holding deposits (up to one week's rent) are not subject to protection rules but must be refunded or applied to the tenancy within 15 days.
Which deposit scheme is best?
No single "best" option. DPS custodial is free to use. MyDeposits and TDS offer both custodial and insured options. Choose based on whether you want to hold the money yourself.
Do I need to re-protect if the rent changes?
No, the deposit amount and protection don't need re-registering if the rent changes mid-tenancy.
What if I've lost the prescribed information record?
Contact the scheme; they may have a record of when you served it. If not, the risk sits with you. Always keep a dated copy going forward.
Can a tenant sue years after the tenancy ended?
Yes, up to three years after the tenancy ends for breach of deposit protection rules.
Keep Every Deposit Record in One Place
Deposit protection is simple in principle. It becomes a liability when you can't find the prescribed information you served three years ago or can't prove when the deposit was registered.
LandoraHub stores every deposit record per tenancy with timestamped uploads, so if a tenant ever questions protection, you can produce the evidence in seconds.
Deposit Protection Service, MyDeposits and TDS scheme documentation
Disclaimer: This article is for general guidance only and does not constitute legal advice. Deposit protection rules are strictly enforced. Always confirm current requirements with the scheme or a qualified solicitor before taking action.
Next step
Build your deadline tracker with one property for free. Organise certificates and tenancy actions in one place, then verify final legal requirements through official channels.
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