In England and Wales, landlords must protect a tenant's deposit in a government-approved scheme within 30 days of receiving it. Failure to do so is a criminal offence and can prevent eviction under Section 21.
The three schemes
- Deposit Protection Service (DPS)
- MyDeposits
- Tenancy Deposit Scheme (TDS)
Landlords can choose custodial (the scheme holds the money) or insurance-backed (the landlord holds the money and insures it).
Prescribed information
Landlords must give tenants written details of how their deposit is protected within 30 days. Failure to do so entitles the tenant to 1–3× the deposit as a penalty, enforced through court.
Tenant rights
If a dispute arises at the end of the tenancy, the scheme offers a free alternative dispute resolution service — you don't need to go to court to challenge unfair deductions.