Landlord Deposit Protection Scheme UK 2026 — TDP Rules Guide

The three government-approved deposit schemes

All three schemes are authorised by the government — your deposit must be in one of them:

• Deposit Protection Service (DPS): Offers both DPS Custodial (free — DPS holds the money) and DPS Insured (landlord holds the money, pays a fee). The largest scheme by volume
• MyDeposits: Insured scheme — the landlord or agent holds the deposit money. Annual membership fee applies. Widely used by self-managing landlords
• Tenancy Deposit Scheme (TDS): Both TDS Custodial (free) and TDS Insured options. TDS Custodial is well-suited to landlords who prefer not to handle deposit money
• Custodial schemes: free, deposit held by the scheme — slightly slower to access at end of tenancy
• Insured schemes: annual membership fee, landlord holds the money — faster access at end of tenancy but requires the landlord to have the money available for return
• All three schemes provide free adjudication at the end of the tenancy — funded by scheme membership fees or interest on custodial deposits

The 30-day protection deadline — what triggers it

The 30-day clock starts when the deposit is received, not when the tenancy starts:

• Day 0: deposit received by landlord or agent
• Day 30: last day to protect the deposit AND serve Prescribed Information on the tenant
• If the deposit is received before the tenancy starts (e.g. paid at signing), the 30-day period runs from the date of receipt — not the tenancy start date
• Late protection (after day 30): still protect immediately — late protection is better than no protection. But the penalty for the period of non-protection still applies
• On renewal or periodic continuation: if the deposit scheme requires re-registration at renewal, re-protect within 30 days and re-serve Prescribed Information
• Agents: where a letting agent receives and holds the deposit, the agent's TDP membership covers protection — but the landlord should confirm protection has occurred and keep a copy of the Prescribed Information

Prescribed Information — complete requirements

Prescribed Information must contain all of the following:

• The scheme in which the deposit is protected (name, contact details, dispute resolution process, and a copy of the scheme leaflet or web address)
• The amount of the deposit protected
• The address of the tenanted property
• The landlord's name and contact details
• The tenant's name and contact details
• The circumstances in which the landlord may make deductions from the deposit
• How the tenant can apply for the deposit to be returned at the end of the tenancy
• What to do if a dispute arises
• Use the scheme's own Prescribed Information certificate — each scheme provides one. Do not draft your own Prescribed Information
• Serve it on the tenant in writing within 30 days — obtain a signed receipt or serve by email with read receipt

Penalties for non-compliance

Courts take TDP breaches seriously — the penalties are significant:

• Failure to protect within 30 days: penalty of 1–3× the deposit amount, awarded to the tenant by the county court
• Failure to serve Prescribed Information within 30 days: same 1–3× penalty applies — a separate penalty from the protection failure (though courts often treat them together)
• The penalty is at the court's discretion — first-time, accidental failures typically attract 1–2×; deliberate, repeated, or egregious failures attract 3×
• The tenant has 6 years from the end of the tenancy to bring a TDP penalty claim — old non-compliant deposits can generate claims long after the tenancy has ended
• Non-compliance does not automatically invalidate the tenancy — but it does prevent certain possession actions from proceeding until the position is regularised

Deposit adjudication at the end of the tenancy

Use the scheme's free adjudication service for any disputed deductions:

• Build a strong evidence file: signed check-in inventory with dated photographs, check-out report, contractor invoices or quotes, rent account statement showing any arrears
• The adjudicator reviews documents only — they do not visit the property. Photographic evidence is critical
• A check-in inventory signed by the tenant (or emailed immediately after move-in) is the most important document in any deposit dispute
• Submit all evidence within the scheme's deadline — typically 10–14 days after raising the dispute
• The adjudication decision is binding on both parties — neither party can appeal on the merits
• Return the undisputed portion of the deposit within 10 days of the tenancy end — holding the full deposit while disputing only part of it attracts criticism from adjudicators

Frequently asked questions