Deposit Protection Schemes UK: Complete Landlord Guide (2026)
Under UK law, landlords must protect tenancy deposits in a government-approved scheme within 30 days. This guide explains your legal obligations, compares all three schemes, and helps you avoid costly penalties.
Failure to Protect = Serious Penalties
If you fail to protect a deposit or provide the prescribed information within 30 days, tenants can claim compensation of 1-3x the deposit amount. You also cannot serve a valid Section 21 notice.
Legal Requirements for Deposit Protection
30 Day Deadline
You must protect the deposit within 30 days of receiving it
Prescribed Information
Provide tenants with scheme details and certificate within 30 days
Maximum 5 Weeks
Deposits capped at 5 weeks' rent (for annual rent under £50,000)
The Housing Act 2004 (as amended by the Localism Act 2011 and Tenant Fees Act 2019) requires all landlords in England and Wales to protect tenancy deposits in one of three government-approved schemes. This applies to all assured shorthold tenancies (ASTs).
Compare the Three Approved Schemes
Deposit Protection Service (DPS)
Custodial (Free)
- Government-backed
- Free to use
- DPS holds the deposit
- Online dispute resolution
MyDeposits
Custodial & Insured
- Choice of scheme type
- Insurance-backed option
- Landlord retains deposit (insured)
- ADR service included
Tenancy Deposit Scheme (TDS)
Custodial & Insured
- Established since 2007
- Both scheme types available
- Free custodial option
- Comprehensive dispute service
Custodial vs Insured: Which Should You Choose?
Custodial Scheme
- Free to use — no fees for landlords
- Scheme holds the deposit for the tenancy duration
- Simple administration — pay in once
Best for: Landlords who want zero costs and simple compliance
Insured Scheme
- You keep the deposit — retain funds during tenancy
- Annual fee applies (typically £20-30)
- Insurance covers tenant claims if you default
Best for: Landlords who want to retain deposit funds
How to Protect a Deposit: Step-by-Step
- 1
Collect the deposit
Receive the deposit from your tenant (max 5 weeks' rent)
- 2
Choose a scheme
Select one of the three government-approved schemes above
- 3
Register and pay in
Register the deposit online within 30 days of receipt
- 4
Provide prescribed information
Give tenants the certificate and scheme leaflet within 30 days
- 5
Keep records
Store proof of protection and tenant acknowledgement
Need a Tenancy Agreement Template?
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