If you’re renting a home in the UK under an Assured Shorthold Tenancy (AST), your security deposit must be protected by your landlord in a government-approved deposit scheme. This law applies to all ASTs that started on or after 6 April 2007 in England and Wales.
Knowing your rights as a tenant can help you avoid problems when it’s time to move out.
What Is a Tenancy Deposit Protection (TDP) Scheme?
A TDP scheme is a government-backed service that protects the money you pay as a deposit. It ensures that you’ll get your money back at the end of the tenancy if:
- You paid your rent and bills
- You didn’t damage the property
- You followed the rental agreement
Your landlord or letting agent must place your deposit in a scheme within 30 days of receiving it.
Which Deposit Schemes Are Approved in the UK?
England and Wales
Landlords must use one of the following schemes:
- Deposit Protection Service (DPS)
- MyDeposits
- Tenancy Deposit Scheme (TDS)
Scotland and Northern Ireland
These areas have different approved schemes. Check the Scottish or Northern Ireland government websites for the correct deposit protection services.
When Will You Get Your Deposit Back?
Your landlord must return your deposit within 10 days of agreeing on the final amount with you. If there’s a dispute, the deposit stays protected until it’s resolved.
The TDP scheme will hold the money and offer a free dispute resolution service to help settle disagreements.
What If the Landlord Doesn’t Protect the Deposit?
If your landlord doesn’t protect your deposit within 30 days, you can:
- Claim compensation of up to three times the deposit amount
- Take them to court
- Challenge eviction under Section 21, which they may not be allowed to use if your deposit wasn’t protected properly
What Must Your Landlord Give You?
Within 30 days of receiving your deposit, your landlord must share the following details:
- The address of the rented property
- The amount of the deposit
- The name and contact details of the TDP scheme
- How the deposit is protected
- Reasons why they might keep some or all of the deposit
- Steps to claim your deposit back
- What to do if you can’t contact your landlord at the end
- Details of the dispute resolution process
- Their own name and contact details
- Name of any third party who paid the deposit (e.g., your parents)
Special Situations
Holding Deposits
A holding deposit is paid to reserve a property before signing the tenancy agreement.
- Landlords do not have to protect this deposit
- Once the agreement is signed, it becomes part of the tenancy deposit and must be protected
Third-Party Deposits
If someone else (like a parent or support agency) pays your deposit:
- It still needs to be protected
- Your landlord must provide the name of the person who paid it
Your deposit is your money, and you have the legal right to have it protected.
- Make sure you receive written proof of protection
- If your landlord fails to do so, you can take legal action
- Don’t forget, you can’t be evicted under Section 21 unless your deposit is protected properly
Always check your tenancy agreement and request deposit details early in your rental period.
FAQ’s
What is a tenancy deposit protection scheme?
It is a government-approved scheme that holds your rental deposit safely and ensures it is returned fairly at the end of the tenancy.
What happens if my landlord doesn’t protect my deposit?
You may be entitled to compensation of up to three times the deposit. You can also challenge eviction under Section 21.
How soon should my deposit be protected?
Your landlord must protect your deposit within 30 days of receiving it and provide you with full details.
When should I get my deposit back?
Within 10 days after both you and your landlord agree on the refund amount. Disputes may delay this.
Do holding deposits need to be protected?
No, but once a tenancy agreement is signed, the holding deposit becomes a tenancy deposit and must be protected.
