Tenancy Deposit Protection UK 2026 — The 30-Day Rule Explained

The three government-approved TDP schemes

There are three government-approved schemes in England and Wales. All offer both custodial (scheme holds the money) and insurance-backed (landlord holds the money) options:

• Deposit Protection Service (DPS) — mydeposits.co.uk parent; the only scheme that does not charge for custodial protection. Free to use, BACS payment required
• MyDeposits — insurance-backed scheme popular with letting agents; landlord retains the deposit and pays an insurance premium per deposit
• Tenancy Deposit Scheme (TDS) — the longest-established scheme; both custodial (TDS Custodial, free) and insurance-backed (TDS Insured) options available
• All three are equally valid — choose whichever scheme is most practical for your portfolio
• Scotland and Northern Ireland have their own separate schemes (SafeDeposits Scotland; Tenancy Deposit Scheme NI)

The 30-day deadline

Landlords must protect the deposit AND serve the prescribed information within 30 days of receiving the deposit:

• Day 1 is the day the deposit is received (not the tenancy start date)
• Both protection and prescribed information service must occur within 30 days — serving prescribed information before protecting the deposit is invalid
• For deposits received before 6 April 2012, the original 14-day rule applied — the 30-day rule applies to all deposits received on or after that date
• If a fixed-term tenancy rolls into a statutory periodic tenancy, the existing protection remains valid — you do not need to re-protect at the end of the fixed term
• If a new fixed-term tenancy is agreed (replacing the periodic), you must re-protect and re-serve prescribed information within 30 days

Prescribed information — what must be served

Prescribed information is the documentation the landlord must give to every relevant person (tenant and any guarantors) within 30 days. It must include:

• The name, address, and contact details of the TDP scheme used
• The scheme's terms and conditions
• An explanation of the purposes of the scheme and how it operates
• The procedure for raising a dispute if there is a disagreement about deductions
• The circumstances under which the deposit can be retained in whole or in part
• The deposit amount protected and the property address
• The name and contact details of any third party (letting agent) holding or managing the deposit
• Each approved scheme provides a prescribed information form — use the scheme's own form to ensure compliance

Deposit deductions — what is permitted

At the end of the tenancy, the landlord may only deduct from the deposit for legitimate losses. Permitted deductions include:

• Unpaid rent: Rent arrears at the end of the tenancy
• Damage beyond fair wear and tear: Damage caused by the tenant that goes beyond normal wear — the condition at the start of the tenancy (documented in the inventory) is the baseline
• Cleaning: Only if the property is left in a materially worse condition than at the start — a professionally cleaned property returned slightly dirty is not a valid deduction
• Replacement items: Where the tenant has lost or broken items beyond fair wear and tear — but the landlord must allow for depreciation (a 3-year-old item cannot be claimed at full replacement cost)
• Breach of tenancy obligations: For example, unauthorised alterations left unrectified
• Fair wear and tear — gradual deterioration from normal use — cannot be charged to the tenant
• An accurate check-in inventory (ideally with timestamped photos) is essential to substantiate any deductions

Penalties for non-compliance

The Housing Act 2004 imposes sanctions for failure to protect a deposit or serve prescribed information:

• Deposit penalty order: Courts must order the landlord to pay the tenant 1–3 times the deposit amount as a penalty — not just repay the deposit
• Possession proceedings affected: A landlord who has not complied with deposit protection requirements cannot rely on certain possession procedures — compliance is required
• Limitation period: Tenants have 6 years from the end of the tenancy to bring a deposit penalty claim
• The landlord must repay the deposit first: A court cannot reduce the penalty on the grounds that the deposit has now been protected — the clock started when the deposit was received
• Multiple breaches: A landlord who has failed to protect across multiple tenancies can face cumulative penalties — each tenancy is a separate breach

Frequently asked questions