Landlord Deposit Scheme Rules UK 2026 — TDP Compliance Guide

Overview

The three government-approved deposit protection schemes

• Deposit Protection Service (DPS): Custodial (DPS holds the money) and insured options available
• MyDeposits: Insured scheme — the landlord holds the deposit money
• Tenancy Deposit Scheme (TDS): Both custodial and insured options — also covers letting agents
• All three schemes are free to tenants — costs (for insured schemes) are met by the landlord or agent
• Custodial schemes (DPS Custodial, TDS Custodial): the scheme holds the money — no ongoing cost to the landlord
• Insured schemes (MyDeposits, TDS Insured): the landlord holds the money but pays an annual membership fee — faster access to the deposit at the end of the tenancy

The 30-day protection deadline

• Deposits must be protected within 30 days of receipt — not 30 days from the tenancy start date
• Prescribed Information must also be served on the tenant within 30 days of receipt
• If the deposit was received before the tenancy start date (e.g. as a holding deposit that converts to a tenancy deposit), the 30-day period runs from the date of receipt
• Late protection (after 30 days) is still better than no protection — but the penalty applies to the period of non-protection, not just the late period
• If you re-protect a deposit at renewal, ensure it is re-protected within 30 days and re-serve Prescribed Information — failure to re-protect can expose you to penalties even on an otherwise compliant deposit

Prescribed Information — what must be served on the tenant

• The scheme's terms and conditions (a copy of the scheme leaflet or link)
• The amount of the deposit protected
• The address of the property
• Details of the scheme (scheme name, contact details, dispute resolution process)
• The landlord's and tenant's details
• The circumstances in which the landlord may make deductions from the deposit
• Prescribed Information must be signed by the landlord (or agent) and returned signed by the tenant — keep the signed copy
• Each scheme provides a Prescribed Information certificate — use it, do not draft your own

Penalties for non-compliance

• Failure to protect or serve Prescribed Information within 30 days: the tenant can apply to the county court for an order requiring protection plus a penalty of 1–3× the deposit amount
• The penalty is at the court's discretion within the 1–3× range — first offences typically attract 1–2×; deliberate or repeated failures attract 3×
• If the deposit is not protected, the landlord cannot serve a valid Section 8 notice based on certain grounds until the deposit is returned or protected and Prescribed Information served
• Note: with Section 21 abolished, the TDP-related bar on Section 21 no longer directly applies — but deposit compliance remains a prerequisite for a clean Section 8 process
• Tenants have 6 years from the end of the tenancy to bring a TDP penalty claim — always protect and serve Prescribed Information correctly from the outset

Deposit adjudication at the end of the tenancy

• All three schemes offer free adjudication for deposit disputes at the end of the tenancy
• The tenant must consent to adjudication — where the tenant refuses, the landlord must apply to court to recover deposit deductions
• Adjudication is based on documents: check-in inventory, check-out report, dated photographs, contractor invoices or quotes, rent account statement
• A check-in inventory signed by (or emailed to) the tenant is the single most important document in any deposit dispute
• Adjudication decisions are binding — neither party can appeal on the merits; challenges are limited to points of law
• Typical adjudication timeframe: 28 days after both parties submit evidence