Deposit protection has been a legal requirement since 2007. Most landlords know the basics — protect the deposit, use an approved scheme. But the prescribed information obligation is the one that catches most landlords out. Protecting the deposit is a relatively obvious step. Serving a specific document containing specific information within the same 30-day window is less visible, particularly for landlords who manage their own properties without professional support. GOV.UK

And since 1 May 2026, the stakes got significantly higher. Since Section 21 was abolished on 1 May 2026, a deposit compliance failure can now block your ability to serve a valid Section 8 notice. Wikipedia

In a legal framework where Section 8 is your only possession route — getting deposit protection wrong doesn't just cost you money. It could leave you unable to recover your property at all.

Protection registration with the scheme and service of the prescribed information document are distinct obligations that both must be completed within 30 days of the deposit being received. Satisfying one without the other is a breach. Many landlords protect promptly but never send the prescribed information, assuming the scheme confirmation email is sufficient. It is not. GOV.UK

The 30-day clock starts the moment you receive the deposit — not when the tenancy starts, not when the tenant moves in. The day the money arrives in your account is Day One.

There are three government-approved deposit protection schemes in England: the Deposit Protection Service (DPS), MyDeposits, and the Tenancy Deposit Scheme (TDS). Each gives you a choice between a custodial option, where the scheme holds the money for the duration of the tenancy, or an insurance-backed option, where you hold the deposit yourself and pay a fee to insure it. Easternlandlords

Deposit Protection Service (DPS)
Custodial and insured options available. The custodial scheme is free — DPS holds the money and returns it at the end of the tenancy. Popular choice for landlords who prefer simplicity.

MyDeposits
Insured scheme — you hold the deposit and pay a fee to insure it. Gives you more control over the funds during the tenancy.

Tenancy Deposit Scheme (TDS)
Both custodial and insured options, widely used by letting agents as well as private landlords.

For most landlords with a small portfolio, the DPS custodial scheme is the simplest and cheapest option. You don't pay a fee and there's no money to manage — DPS holds it until the tenancy ends. The Landlord Group

The prescribed information must include all of the following: scheme details, scheme terms, how the tenant can access the deposit at end of tenancy, dispute process, ADR details, landlord contact details, property address, amount protected and date received, and circumstances for proposed deductions. Each scheme provides a prescribed information template. Using the scheme's own template is the simplest way to ensure all required elements are included. Landlords who draft their own version risk omitting a required element and invalidating the service. GOV.UK

A critical detail most landlords miss: both the tenant AND anyone who paid the deposit on their behalf — for example parents — must receive the prescribed information. If a parent funded the deposit, they need to receive the prescribed information too. Serving it on the tenant only is not sufficient compliance. The Landlord Group

The Tenant Fees Act 2019 introduced a cap on tenancy deposits of five weeks' rent for annual rents under £50,000, or six weeks' rent for annual rents between £50,000 and £100,000. The Renters' Rights Act has not changed these caps. Stephens Scown LLP

Taking more than the permitted amount is a criminal offence, not just an administrative error. Wikipedia

This is a 2026 change many landlords haven't clocked. From 1 May 2026, the maximum rent in advance you can request is one month's rent. This applies to all new and existing private tenancies in England. Requesting more than one month is a prohibited payment under the Renters' Rights Act. The law prohibits landlords from asking for, encouraging, or accepting more than one month's rent in advance. Even a genuinely voluntary offer from the tenant cannot be accepted. The restriction is absolute. CertNudge

The practice of asking for three or six months' rent upfront as an informal credit check workaround is now illegal. You must rely on formal referencing and the deposit framework.

Breaking the deposit protection rules can result in a penalty of one to three times the deposit amount per tenant. LetSafe UK

For a £1,200 deposit, penalties could range from £1,200 to £3,600, plus the return of the £1,200 deposit itself — up to £4,800 total. The Landlord Group

Where both obligations are missed — deposit not protected and prescribed information not served — the court may treat these as two separate breaches, each attracting a penalty of one to three times the deposit amount. GOV.UK

That means potential liability of six times the deposit amount if both obligations are missed completely.

But the bigger consequence in 2026 is the possession block. Under the Renters' Rights Act 2025, from 1 May 2026 you will not be able to obtain possession under ANY Section 8 ground — except anti-social behaviour grounds 7A and 14 — unless the deposit is properly protected. The Landlord Group

Section 21 no longer exists. Section 8 is the only possession route, and deposit non-compliance is a prerequisite bar to it. Identifying and fixing deposit failures is now a possession-critical obligation, not just a penalty risk. GOV.UK

A validly protected deposit with properly served prescribed information continues to cover the tenancy without renewal. The conversion of fixed-term tenancies to periodic tenancies on 1 May 2026 did not invalidate existing deposit protection or require re-service. A new 30-day clock only starts if a new deposit is received. GOV.UK

However — if the deposit changes, for example if it increased at renewal, you must update the protection to match. The Landlord Group

When a tenancy ends, the deposit must be returned, less any agreed deductions, within ten days of the parties reaching agreement. Where the landlord and tenant cannot agree on deductions, any of the three schemes offers a free, independent Alternative Dispute Resolution service. ADR decisions are final and legally binding on both parties. Shelter England

Evidence submitted to ADR carries a higher bar than most landlords expect: deposit scheme adjudicators consistently reject deductions that lack itemised, costed evidence referenced to the original inventory. The landlords who win ADR cases are those who built the evidential record from the first day of the tenancy, not from the day they received the tenant's objection. Shelter England

✅ Protect within 30 days of receiving the deposit — not 30 days from tenancy start. Day one is when the money arrives.

✅ Serve prescribed information within the same 30 days — protection alone is not enough. The document must be served separately.

✅ Use the scheme's own template — don't draft your own version. Use the template provided by DPS, MyDeposits or TDS.

✅ Serve prescribed information on every relevant person — tenant plus anyone who contributed to the deposit, including parents.

✅ Keep proof of service — a signed copy or email acknowledgement from the tenant. You need to be able to prove it was served.

✅ Check the deposit amount — five weeks' rent maximum for rents under £50,000. Six weeks for higher rents. Exceeding the cap is a criminal offence.

✅ Maximum one month's rent in advance — from 1 May 2026. No exceptions, even if the tenant offers more voluntarily.

✅ Return within 10 days of agreeing deductions — or refer to ADR if you can't agree.

✅ Build your inventory evidence from day one — photos, condition report, signed inventory. Your ADR case depends on what you documented at the start.

✅ Check existing tenancies — for any tenancies where deposit protection or prescribed information was missed, take steps to remedy before the issue becomes relevant to a possession claim.

Deposit disputes are one of the most common flashpoints in any tenancy. In most cases, the problem is not bad faith on either side — it is a landlord who missed a deadline, skipped a form, or assumed that roughly right was close enough. When it comes to deposit protection, it never is. Wikipedia

The rules haven't fundamentally changed — but the consequences of getting them wrong have. With Section 21 gone and Section 8 your only possession route, deposit compliance is no longer just a financial risk. It's the foundation your entire tenancy management rests on.

Track deposit protection dates, scheme details, prescribed information service dates and deposit amounts across your entire portfolio — everything documented and dated from day one.

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Coming up next edition — HMO licensing: who needs a licence, what it costs, and what happens if you don't have one.

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