Quick answer
How deposit protection schemes work for UK landlords — legal deadlines, prescribed information, and penalties for failing to protect tenant deposits.
If you take a deposit on an Assured Shorthold Tenancy in England and Wales, you must protect it in a government-approved deposit protection scheme within 30 days of receipt. This is one of the most enforced landlord obligations — and one of the most commonly breached.
Approved schemes
Three government-authorised schemes operate in England and Wales:
- Deposit Protection Service (DPS) — custodial or insured
- MyDeposits — insured
- Tenancy Deposit Scheme (TDS) — custodial or insured
In Scotland and Northern Ireland, different schemes apply.
Custodial vs insured
| Type | How it works |
|---|---|
| Custodial | You transfer the deposit to the scheme. Free for landlords. Scheme holds funds until tenancy ends. |
| Insured | You keep the deposit but pay a fee to insure it with the scheme. Common for agents. |
Both are legally valid. The scheme provides free dispute resolution if you and the tenant disagree on deductions at the end of the tenancy.
What you must do within 30 days
- Protect the deposit in an approved scheme
- Provide prescribed information to the tenant (and anyone who paid the deposit on their behalf), including:
- Scheme name and contact details
- Property address
- Deposit amount
- How to apply for release at end of tenancy
- Dispute resolution procedure
Failure on either step counts as non-protection.
Penalties for non-compliance
Courts can order landlords to pay tenants:
- 1x the deposit if protected late but before court proceedings
- 3x the deposit if not protected at all, or prescribed information not provided
Section 21 notices can no longer be used in England since 1 May 2026, but the penalty for an unprotected deposit remains: one to three times the deposit.
End of tenancy
Return the deposit within 10 days of agreeing the amount, or refer disputes to the scheme’s free adjudication service. Provide evidence for any deductions — inventory, photographs, invoices.
Common mistakes
- Protecting after the 30-day deadline
- Protecting in the wrong scheme for the jurisdiction
- Forgetting prescribed information when the same tenant renews
- Not re-protecting after a renewal where a new deposit is taken
Making sure every deposit is protected correctly
Deposit protection should be standard on every tenancy, whoever sets it up. If you use an agent, ask them to confirm in writing which scheme holds the deposit and when it was registered. Missed deadlines can bring a penalty. See our landlord legal requirements guide for the wider checklist.
Read the first-time landlord checklist or browse the compliance guides.