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
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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.
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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.
Check-in / Check-out Report
The dated, photographed inventory record taken at the start (check-in) and end (check-out) of a tenancy, signed by tenant and landlord/agent. It is the primary evidence base for any deposit deduction claim through the DPS, TDS or mydeposits adjudication process — without it, the scheme will almost always award the deposit back to the tenant. Best practice: third-party inventory clerk, time-stamped photographs of every room and meter reading, and tenant sign-off within 7 days.
Holding Deposit
A capped one-week refundable deposit a landlord or agent can take to reserve a property while reference checks are completed. Under the Tenant Fees Act 2019 it cannot exceed one week’s rent and must be returned, applied against the first rent or applied against the security deposit within 15 days of receipt unless the tenant withdraws, fails Right to Rent, provides false information or fails to take all reasonable steps to enter the agreement. Charging more than one week, or wrongly retaining the deposit, is a banned payment with civil penalties up to £30,000.
Inventory (Inventory Clerk)
The detailed, photographed schedule of the property’s condition and contents at the start of a tenancy, used as the comparison baseline at check-out for deposit deductions. A professionally prepared inventory by an APIP / AIIC-accredited inventory clerk costs typically £80–£200 depending on property size and is the strongest evidence base for the DPS, TDS or mydeposits adjudication process. The Renters Rights Act 2025 strengthens tenant rights to challenge unfair deductions, raising the evidentiary bar for landlords.
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.