The 30-day rule
Landlords must protect the deposit AND serve the prescribed information within 30 days of receiving the deposit. Both steps must be completed within the window, protection on day 29 and prescribed information on day 31 is a breach of the prescribed information requirement.
The three approved TDP schemes
- Deposit Protection Service (DPS), custodial option is free; scheme holds the money
- MyDeposits, insurance-backed; landlord holds the deposit, pays an annual premium
- Tenancy Deposit Scheme (TDS), both custodial (TDS Custodial, free) and insurance-backed (TDS Insured) options
Prescribed information requirements
Prescribed information is a statutory document that must be served on the tenant (and any guarantor) within 30 days. It must include: the scheme name and contact details, the scheme's terms and conditions, how disputes are raised, the deposit amount and property address, and the circumstances in which deductions can be made. Use the scheme's own prescribed information form.
Permitted deposit deductions
- Unpaid rent at the end of the tenancy
- Damage beyond fair wear and tear (documented in the check-in inventory)
- Professional cleaning where the property is returned in worse condition than at check-in
- Replacement of lost or broken items (with depreciation applied for age)
- Unrectified breach of tenancy obligations
Normal deterioration from day-to-day use is fair wear and tear and cannot be deducted from the deposit. A detailed check-in inventory with timestamped photos is the landlord's best protection in a deposit dispute.
Penalties for non-compliance
- Deposit penalty order: court must order 1�3 times the deposit amount as a penalty
- 6-year limitation period for tenants to bring a claim after tenancy ends
- Affects validity of possession proceedings, compliance required
- Re-protection required if a new fixed-term tenancy is granted (not if tenancy becomes periodic)