Deposit Cap
The limit on tenancy deposits set by the Tenant Fees Act 2019. Five weeks' rent where annual rent is under £50,000, six weeks' rent where rent is £50,000 or more. Holding deposits are separately capped at one week's rent.
At a glance
- Under £50k rent
- 5 weeks’ rent max
- £50k rent or more
- 6 weeks’ rent max
- Holding deposit
- 1 week’s rent max
- Law
- Tenant Fees Act 2019
Full guide
Read the complete landlord guide on Deposit Cap
Deadlines, fines and step-by-step compliance in our in-depth resource.
Open full guideWhy Deposit Cap matters for landlords
The 5-week cap is calculated weekly (annual rent ÷ 52 × 5), not monthly, and many landlords still collect a month-plus-deposit package that quietly breaches the limit. A tenant can apply to the First-tier Tribunal to recover the overpayment plus statutory penalties, and an overcap deposit invalidates some notice-serving routes in the same way an unprotected deposit does. A quick weekly-rent recalculation at each renewal removes the risk.
Official sources
LetCompliance editorial reviews this entry every quarter against the sources above. Always confirm specific duties with a qualified solicitor or your local council.
Related terms
Deposit Protection Scheme
A government-authorised scheme that holds or insures tenancy deposits. Three schemes are approved in England: DPS (Deposit Protection Service), TDS (Tenancy Deposit Scheme) and mydeposits. Deposits must be protected within 30 days of receipt.
DPS (Deposit Protection Service)
The largest of the three government-authorised deposit protection schemes in England. Offers both custodial (free) and insured deposit protection. Landlords upload deposits within 30 days and issue Prescribed Information to the tenant.
mydeposits
One of the three government-authorised deposit protection schemes in England. Offers custodial and insured options. Deposits must be protected within 30 days of receipt.
TDS (Tenancy Deposit Scheme)
One of three government-authorised deposit schemes in England. Offers a custodial scheme (TDS Custodial) and an insured scheme (TDS Insured). Adjudication is included for disputes at end of tenancy.
Compliance Score
A 0-100 score LetCompliance assigns to each property based on how up-to-date its safety certificates and tenancy documents are. 100 means Gas Safety, EICR, EPC, deposit protection and Right to Rent are all current; the score drops as deadlines approach and is recalculated daily.
Prescribed Information
A document landlords must give tenants within 30 days of receiving a deposit, alongside deposit protection. It tells the tenant which scheme holds the deposit, how to reclaim it and how to raise a dispute. Failure to serve it can result in a penalty of 1-3 times the deposit.