Deposit protection in 2026: TDP schemes and prescribed information
Legal basis: Housing Act 2004, sections 212–215 and Schedule 10. Non-compliance means the court can order the landlord to repay the deposit and pay a penalty of one to three times the deposit amount.
The 30-day protection requirement
Under section 213 of the Housing Act 2004, a landlord who takes a tenancy deposit must protect it in a government-approved tenancy deposit scheme within 30 days of receiving it.
There are three approved custodial schemes — where the scheme holds the deposit — and two approved insurance-based schemes where the landlord holds the deposit but pays a premium to the scheme for protection:
- Deposit Protection Service (DPS): Custodial and insured options. depositprotection.com
- mydeposits: Insured scheme. mydeposits.co.uk
- Tenancy Deposit Scheme (TDS): Custodial and insured options. tenancydepositscheme.com
Prescribed information — what it is and when to serve it
Within the same 30-day window, you must also serve prescribed information on the tenant. This is a separate legal obligation from protection itself. Prescribed information includes:
- Details of which scheme is protecting the deposit
- The scheme's contact details and dispute resolution process
- The amount of the deposit protected
- The address of the rental property
- Your contact details and the tenant's contact details
- The circumstances under which deductions may be made
- What the tenant should do if they disagree with proposed deductions
Each scheme provides its own prescribed information template. Download the form from your scheme, complete it and serve it on the tenant within 30 days of receiving the deposit.
Proof of service matters. Protecting the deposit is not enough — you must also be able to prove you served the prescribed information within 30 days. Send it by email and keep the sent email. Have the tenant sign an acknowledgement at move-in.
The deposit cap
Under the Tenant Fees Act 2019, the maximum deposit a landlord can charge is five weeks' rent for tenancies where the annual rent is under £50,000, and six weeks' rent for tenancies where the annual rent is £50,000 or above. Charging a deposit above the cap is a prohibited payment.
Consequences of non-compliance
If you fail to protect the deposit or serve prescribed information within 30 days, the consequences are significant:
- The court can order you to repay the deposit to the tenant
- The court can order you to pay the tenant between one and three times the deposit amount as a penalty
- You cannot serve a valid Section 8 notice on certain grounds while the deposit is unprotected or prescribed information has not been served
There is no time limit on a tenant bringing a deposit protection claim. A tenant who was never given prescribed information can bring a claim years after the tenancy ended.
At the end of the tenancy
When the tenancy ends, you have a reasonable time to assess the property and propose any deductions. Best practice is to carry out a check-out inspection within 7–10 days and send the tenant a written schedule of proposed deductions with supporting evidence (photographs, invoices).
If the tenant disputes your deductions, the scheme's dispute resolution service (which is free) will adjudicate based on the evidence submitted. To succeed, you need:
- A detailed check-in inventory with photographs taken at the start of the tenancy
- A check-out report with photographs comparing the condition at move-out to move-in
- Invoices or reasonable estimates for any repair or cleaning costs claimed
The single most common reason landlords lose deposit disputes is a weak check-in inventory. A property visit report with photographs, signed by the tenant at move-in, is the foundation of any successful deduction claim.