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.
At a glance
- Schemes (England)
- DPS, TDS, mydeposits
- Window
- Protect within 30 days of receipt
- Penalty
- 1–3× deposit + Section 21 block
- Prescribed info
- Must be served with protection
Full guide
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Open full guideWhy Deposit Protection Scheme matters for landlords
Deposit protection is the most frequently-litigated breach in the landlord world because the sanction is both financial (1–3× the deposit) and procedural (blocks Section 21 historically, still blocks some Section 8 routes post-RRA). The 30-day window runs from receipt, not from tenancy start, so a deposit collected two weeks before move-in shortens the available time. Landlords relying on a letting agent should keep their own receipt dates; agent failures are still the landlord’s liability in tenant-deposit claims.
Worked example
A landlord in Bristol receives a £1,800 deposit for a new tenancy starting 1 April 2026 and pays it into their account on 28 March. They protect it with DPS on 1 April assuming the tenancy-start date is the 30-day trigger. Six months later the tenant disputes a deduction; the deposit was actually received on 28 March, the DPS upload was 4 days inside the 30-day window — but the Prescribed Information was not served until 12 April, 15 days after the cap. The tenant is awarded 2× the deposit (£3,600) plus the disputed £450 and the landlord cannot pursue Section 8 grounds that depend on a compliant deposit setup.
Illustrative scenario based on real UK landlord casework patterns. Names and addresses are fictitious.
Common Deposit Protection Scheme mistakes UK landlords make
- Counting the 30-day window from the tenancy-start date instead of from the date the deposit was actually received.
- Protecting the deposit on time but serving the Prescribed Information late — the two duties are separate and both attract the 1–3× penalty.
- Relying on a letting agent to protect the deposit without holding written confirmation of upload date and Prescribed Information service.
- Re-protecting the deposit at renewal under the old AST regime and forgetting that periodic tenancies post-RRA do not need fresh protection unless the deposit changes.
What to do this week
- Pull every active deposit’s upload date from your scheme dashboard and check it against the actual receipt date in your bank statement.
- Re-issue any Prescribed Information you cannot prove was served, with a current date and an explicit "re-issue for record" note.
- Build a single end-to-end "deposit pack" PDF (certificate + scheme leaflet + signed PI) and email it once per tenancy.
- Diary a 21-day deposit-protection action point at every new tenancy, not 30 — the buffer means a missed day is not a breach.
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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 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.
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.