Compliance
What are the deposit protection rules?
Last updated 4 July 2026 · Reviewed by Nick Thorpe, founder
The short answer
In England and Wales you must protect a tenant's deposit in a government-approved scheme within 30 days of receiving it, and give the tenant the prescribed information in the same window. Get it wrong and a court can order you to repay one to three times the deposit. Livdin registers every deposit with the DPS.
Deposit protection is one of the easiest bits of landlord compliance to get right and one of the most expensive to get wrong. The rules below apply to tenancy deposits in England under the Housing Act 2004, and they cover today’s periodic assured tenancies (formerly ASTs) just the same.
What is the 30-day rule?
You must protect the deposit in a government-approved scheme within 30 days of receiving it, and give your tenant the prescribed information within the same 30 days. The clock starts when the money lands in your account, not when the tenancy starts, so a deposit taken at referencing stage can run out of road before the tenant has even moved in.
The full sequence looks like this:
- Take the deposit. The Tenant Fees Act 2019 caps it at five weeks’ rent where the annual rent is under £50,000 (six weeks at £50,000 or more).
- Register it with an approved scheme within 30 days of receipt.
- Serve the prescribed information on the tenant, and on anyone who paid the deposit on their behalf, within the same 30 days.
- Keep dated proof of both. If a dispute or a possession claim comes later, this paperwork is what saves you.
What is the prescribed information?
The prescribed information is a set of details you must give the tenant in writing: which scheme holds the deposit and how to contact it, how much was paid and for which property, how the tenant gets the money back at the end, what happens if there is a dispute, and your contact details as landlord. The schemes provide templates, including a deposit protection certificate and their scheme leaflet. Serving the certificate alone is not enough. The prescribed information is a separate requirement with the same 30-day deadline, and it is the step landlords most often miss.
Which scheme should you use?
There are three government-approved schemes in England and Wales, and deposits can be held on a custodial or an insured basis. Livdin registers every deposit with the DPS (the Deposit Protection Service).
| Custodial | Insured | |
|---|---|---|
| Who holds the money | The scheme | You or your agent |
| Cost | Free to use | A fee per deposit |
| If there is a dispute | The scheme already holds the funds | You must send the disputed amount to the scheme |
For most landlords custodial is the simpler option. The money sits with the scheme, so nobody has to argue about who is holding it.
What are the penalties for getting it wrong?
A court can order you to repay the deposit plus compensation of between one and three times its value, and protecting it late does not undo the breach. An unprotected deposit can also hold up getting your property back, because possession claims get tested against your compliance paperwork. Possession rules are changing under the Renters’ Rights Act, so if you are behind on any of this, sort the deposit first; our Renters’ Rights Act landlord guide covers what else is moving. Rules change, and we confirm the current requirements on every tenancy we set up.
Which deductions actually stick?
The deductions that survive a dispute are the boring, well-evidenced ones: unpaid rent, damage beyond fair wear and tear, cleaning needed to return the property to its check-in standard, and replacing missing items. Fair wear and tear is not chargeable. Carpets flatten, paint scuffs, and a four-year tenancy will leave marks a six-month one would not.
If the tenant disagrees with a deduction, the DPS offers a free dispute resolution service and an adjudicator decides on the evidence. Adjudicators are not moved by strong feelings, only by paperwork. That means a dated, photographed inventory at check-in, a matching checkout report, and invoices for anything you claim. No inventory usually means no deduction, however obvious the damage feels to you.
How does Livdin handle deposits?
Deposit registration with the DPS is part of tenancy setup on every let we manage: £30 plus VAT on a single let, and included within HMO management, with the full schedule published on our fees page. We prepare the inventory before move-in, serve the prescribed information inside the deadline, and evidence any deductions at checkout so they hold up if challenged. It is one of the quiet parts of full property management that you only notice when it has been missed.