What is tenancy deposit protection?
Since 2007, landlords in England and Wales have been required by law to protect any deposit they take from a tenant using a government-approved tenancy deposit scheme. The requirement exists to ensure that landlords cannot unfairly withhold deposits at the end of a tenancy.
There are three government-approved schemes: the Deposit Protection Service (DPS), MyDeposits, and the Tenancy Deposit Scheme (TDS). Each scheme holds the deposit either as a custodial arrangement (the scheme holds the money) or as an insurance arrangement (the landlord holds the money and pays a premium to insure it).
The 30-day rule
Your landlord must protect your deposit within 30 days of receiving it. If you pay your deposit on the day you sign your tenancy agreement, the clock starts from that date. The landlord must also give you the 'prescribed information' — a written document explaining which scheme protects your deposit, how the scheme works, and how to raise a dispute — within the same 30-day period.
The prescribed information must include: the name and contact details of the scheme, how to apply for the return of the deposit at the end of the tenancy, information about the dispute resolution service, and a copy of the scheme's leaflet.
What if your landlord did not protect your deposit?
If your landlord fails to protect your deposit within 30 days, or fails to give you the prescribed information, you can apply to the County Court for a penalty. The court can order the landlord to return your deposit and pay you additional compensation of between one and three times the original deposit amount.
You can bring this claim at any time during the tenancy or within three months of the tenancy ending. If your landlord tries to serve a Section 21 notice while your deposit is not protected (or prescribed information has not been provided), that notice is invalid. However, since Section 21 is now abolished, this particular consequence is less relevant — the right to compensation remains.
Getting your deposit back at the end of the tenancy
At the end of your tenancy, your landlord has 10 days to return your deposit (or the agreed amount) after you have both agreed the final amount. If there is a dispute about deductions, you can use the free dispute resolution service provided by whichever scheme protects your deposit.
Keep a thorough inventory and condition report, with photographs, at both the start and end of your tenancy. This is your primary evidence in any deposit dispute. Fair wear and tear cannot be deducted from your deposit — only damage beyond normal use.