Question 1

What is tenancy deposit protection?

Accepted Answer

Tenancy deposit protection is a legal requirement in England and Wales for landlords who take a deposit from tenants on assured shorthold tenancies. The deposit must be placed with one of three government-approved schemes (DPS, TDS, or MyDeposits) within 30 days of receipt.

Question 2

What's the difference between custodial and insured schemes?

Accepted Answer

With a custodial scheme, the scheme provider holds the deposit money for the duration of the tenancy — this is free. With an insured scheme, the landlord keeps the deposit in their own account but pays the scheme a fee to insure it. Both provide the same legal protection for tenants.

Question 3

What are the penalties for not protecting a deposit?

Accepted Answer

A court can order the landlord to pay the tenant between 1x and 3x the deposit amount as compensation. Additionally, you will be unable to serve a valid Section 21 (no-fault eviction) notice until the deposit is properly protected and the Prescribed Information is served.

Question 4

When does the 30-day deadline start?

Accepted Answer

The 30-day clock starts on the date you receive the deposit, not the date the tenancy begins. If a holding deposit is converted into a tenancy deposit, the 30 days runs from when the holding deposit was first paid.

Question 5

Do holding deposits need to be protected?

Accepted Answer

No, a holding deposit paid before a tenancy is agreed does not need to be protected. However, if the holding deposit is later used as part of the tenancy deposit, the full amount must be protected within 30 days of the original payment.

Question 6

What is Prescribed Information (PI)?

Accepted Answer

Prescribed Information is a set of written details you must give your tenant within 30 days of receiving their deposit. It includes the deposit amount, the scheme it's protected with, the scheme's contact details, the landlord's contact details, the property address, and information about the dispute resolution process.

Question 7

Can I still use Section 21 if the deposit wasn't protected in time?

Accepted Answer

No. You must first return the deposit to the tenant (or protect it and serve the PI) before you can serve a valid Section 21 notice. Under the Deregulation Act 2015, if the deposit is later protected, you can then serve Section 21 — but any prior notice would be invalid.

Question 8

Does deposit protection apply in Scotland and Northern Ireland?

Accepted Answer

Yes, but under different legislation. Scotland uses SafeDeposits Scotland, Letting Protection Service Scotland, and mydeposits Scotland under the Tenancy Deposit Schemes (Scotland) Regulations 2011. Northern Ireland requires protection under the Tenancy Deposit Scheme Regulations (NI) 2012. This tool focuses on England & Wales rules.

Scheme	Custodial	Insured	Cost	Who Holds Deposit	Dispute Resolution
DPS	Yes (free)	Yes	Free (custodial) / from £0 (insured)	DPS (custodial) or landlord (insured)	Free ADR service
TDS	Yes (free)	Yes	Free (custodial) / from £0 (insured)	TDS (custodial) or landlord (insured)	Free ADR service
MyDeposits	Yes (free)	Yes	Free (custodial) / from £16.80 (insured)	MyDeposits (custodial) or landlord (insured)	Free ADR service

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Deposit Protection Tracker.

Deposit Details

Key Facts About Deposit Protection

30-Day Rule

Prescribed Information

Penalty: 1x–3x Deposit

Section 21 Blocked

Applies to Renewals

Housing Act 2004

Scheme Comparison

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Common questions

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