If you are renting a home under an Assured Shorthold Tenancy (AST) that started after 6 April 2007, your landlord is legally required to protect your security deposit in a government-approved tenancy deposit scheme (TDP). This ensures that your money is safe and will be returned to you at the end of the tenancy if you meet the terms of the rental agreement.
In this article, we will explain how deposit protection works, what your landlord must do, and what happens if there is a dispute.
Government-Approved Tenancy Deposit Schemes in the UK
England and Wales
If you rent a home on an Assured Shorthold Tenancy (AST), your landlord must register your deposit with one of these approved deposit protection schemes:
- Deposit Protection Service (DPS)
- MyDeposits (including deposits previously held by Capita)
- Tenancy Deposit Scheme (TDS)
Scotland and Northern Ireland
Separate deposit protection schemes exist in Scotland and Northern Ireland. If you rent in these areas, check the official government websites for details on local TDP schemes.
What Does a Tenancy Deposit Protection Scheme Do?
A TDP scheme protects your deposit and ensures that it is returned to you at the end of your tenancy if:
- You follow the tenancy agreement (e.g., no unpaid rent).
- You do not cause damage to the property.
- You pay all rent and utility bills as agreed.
Your landlord or letting agent must protect your deposit within 30 days of receiving it.
When Should You Get Your Deposit Back?
At the end of your tenancy, your landlord must return your deposit within 10 days of both parties agreeing on the amount to be refunded.
If there is a dispute between you and your landlord regarding deductions from the deposit, the money will remain protected in the TDP scheme until the issue is resolved.
What Happens If a Landlord Does Not Protect Your Deposit?
If your landlord does not protect your deposit in a TDP scheme within 30 days, you may be entitled to compensation of up to three times the deposit amount. You can take legal action in court to claim this compensation.
Special Cases: Holding Deposits and Third-Party Deposits
Holding Deposits
- A holding deposit is money you pay to reserve a rental property before signing a tenancy agreement.
- Landlords do not have to protect holding deposits in a TDP scheme.
- Once you sign the tenancy agreement, the holding deposit becomes a tenancy deposit and must then be protected.
Deposits Paid by a Third Party
- If your deposit is paid by someone else (e.g., a parent or a rent deposit scheme), your landlord must still protect it in a TDP scheme.
What Information Should Your Landlord Provide?
Once your landlord receives your deposit, they have 30 days to give you the following details:
- Property address (the rental home covered by the deposit).
- Deposit amount you have paid.
- Name of the TDP scheme protecting the deposit.
- Contact details of the TDP scheme and its dispute resolution service.
- Landlord or letting agency’s name and contact details.
- Name and contact details of any third party who paid the deposit (if applicable).
- Reasons why the landlord might keep some or all of the deposit.
- How to apply for a refund of your deposit.
- Steps to take if you cannot reach your landlord when moving out.
- What to do if there is a dispute over the deposit refund.
If your landlord fails to provide this information, they may not be able to serve you an eviction notice under Section 21.
As a tenant, knowing your rights regarding deposit protection is essential. Your landlord must protect your deposit and return it fairly when you leave. If there are disputes, the TDP scheme ensures that your money remains safe while the issue is resolved. If you suspect your landlord has not followed these rules, you have the right to take legal action.
FAQ’s
Can a landlord ask me to leave without notice?
No, a landlord must give proper written notice based on your tenancy type. Excluded tenants (lodgers) may receive verbal notice.
What is a Section 21 notice?
A Section 21 notice allows a landlord to ask a tenant to leave without providing a reason, as long as proper notice is given.
Can my landlord evict me for not paying rent?
Yes, landlords can issue a Section 8 notice if tenants have rent arrears. The notice period depends on how much rent is unpaid.
Do I have to leave if I receive an eviction notice?
Not immediately. If you do not leave, the landlord must apply for a court order to legally evict you.
What happens if my landlord didn’t protect my deposit?
If your deposit is not protected, a Section 21 notice may be invalid, and you may be entitled to compensation.