Tenancy Deposit Scheme

A tenancy deposit protection (TDP) scheme safeguards a tenant’s deposit during a tenancy and provides a process for resolving deposit disputes at the end. In England and Wales, the government-approved providers are Deposit Protection Service, MyDeposits and Tenancy Deposit Scheme (TDS)

At a glance: for most qualifying private tenancies in England, the landlord or letting agent must protect the tenant’s deposit in a government-approved tenancy deposit protection scheme and provide key information within 30 days of receiving it.

What is a tenancy deposit scheme?

A deposit is usually paid as security against a tenant not meeting the obligations in the tenancy agreement, such as unpaid rent, damage beyond fair wear and tear, or agreed bills.

When does a deposit need to be protected?

In England, a landlord or letting agent must protect a qualifying tenancy deposit within 30 days of receiving it. They must also give the tenant the required deposit-protection information within that period. This includes information about the scheme, how the deposit is protected, how it can be returned and how disputes are handled. See the required information on GOV.UK.

A holding deposit paid while a property is being reserved is different: it does not need TDP protection at that stage. If it becomes the tenancy deposit when the tenancy starts, it must then be protected where the rules apply.

Custodial and insured protection

Custodial scheme

The deposit is transferred to, and held by, the scheme for the duration of the tenancy. It cannot normally be released without agreement or a decision through the scheme’s process.

Insured scheme

The landlord or agent holds the deposit and pays for protection through the scheme. If a dispute arises, the deposit may need to be transferred to the scheme while the matter is resolved.

TDS provides both custodial and insured deposit protection. Learn how TDS deposit returns work.

What tenants should receive

Once a deposit has been protected, the tenant should receive the prescribed information. This should make it clear:

Which scheme protects the deposit and how to contact it
The deposit amount and the rented property’s address
The landlord’s or letting agent’s details
How to request the deposit back at the end of the tenancy
Potential reasons for deductions
How to raise or respond to a dispute

Keep the certificate or confirmation email with the tenancy agreement, inventory, check-in report and rent-payment records.

At the end of the tenancy

At check-out, the landlord or agent should propose any deductions and explain the reason for them. If both sides agree how the deposit should be split, the deposit should be returned within 10 days of that agreement. GOV.UK deposit-return guidance.

Example: an agreed deduction

A tenant agrees that £120 can be deducted for an unpaid utility bill that they were responsible for under the tenancy agreement. The remaining deposit can be returned through the scheme’s repayment process.

Example: a disputed deduction

A tenant disagrees with a proposed cleaning charge. The parties should first try to resolve the issue with evidence such as the inventory, check-in and check-out reports, dated photographs, invoices and correspondence. If agreement cannot be reached, either side can use the scheme’s dispute-resolution process where available.

How to check a deposit

Check the tenancy paperwork and deposit-protection certificate.
Ask the landlord or letting agent which scheme they used if the information is missing.
Use the relevant scheme’s deposit-checking service with the details requested.
If the deposit is not protected by that scheme, check the other approved providers.

TDS offers a deposit-checking service for deposits protected with TDS. Check a TDS deposit.

Key points for landlords and letting agents

Protect a qualifying deposit and give prescribed information within the required 30-day period.
Maintain a detailed inventory, check-in report and photographic record of condition.
Keep clear records of rent, communications, repairs and any proposed deductions.
Discuss deductions promptly at the end of the tenancy and use the scheme’s process if an agreement cannot be reached.
Check current rules before serving notices or taking action, as deposit-protection compliance can affect a landlord’s options.

TDS states that non-compliance can lead to a court claim and may affect a landlord’s ability to use a Section 21 notice. Read TDS landlord and agent FAQs.

Important: This page is a general guide for properties in England and is not legal advice. Deposit requirements can depend on the tenancy type and location; rules are different in Wales, Scotland and Northern Ireland. Check current official guidance or take professional advice for a specific tenancy.

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