Tenancy deposits in England explained: the cap, protection, deductions and how you get it back
Short answer: In England a tenancy deposit is capped at five weeks' rent where the annual rent is under £50,000, and six weeks' rent at £50,000 or more. It must be placed in a government-approved scheme within 30 days. Deductions must reflect real financial loss, not fair wear and tear. Once an amount is agreed, the deposit is returned within 10 days.
If you are moving to London from overseas, the deposit is usually the largest single sum you hand over to a stranger in a country whose rules you have not yet learnt. If you are an overseas landlord letting a London flat, it is the part of the tenancy most likely to end in an argument you lose. The rules below are the same for both of you.
How much can a deposit be in England?
The cap sits in Schedule 1 to the Tenant Fees Act 2019. Paragraph 2(3) makes the excess above the cap a prohibited payment where the deposit exceeds "the amount of five weeks' rent, where the annual rent … is less than £50,000, or … six weeks' rent, where the annual rent … is £50,000 or more".
So on a £2,000 pcm flat — £24,000 a year — the ceiling is five weeks' rent, £2,307.69. Not two months. Not "three months because you are an international student". A landlord or agent asking for more than the cap is asking for a prohibited payment under the Act.
This matters most to tenants without a UK employment history, because a larger deposit is the usual thing to ask for instead. The lawful route is a UK guarantor or a guarantor product — not a bigger deposit. Our tenant fees schedule sets out every payment we are permitted to take.
Does my deposit have to be protected, and by when?
Yes. Section 213(1) of the Housing Act 2004 requires that any tenancy deposit paid in connection with an assured tenancy "must, as from the time when it is received, be dealt with in accordance with an authorised scheme". Section 213(3) gives the landlord 30 days beginning with the date the deposit is received to comply with the scheme's initial requirements, and section 213(6)(b) gives the same 30 days to serve the prescribed information.
England has three approved schemes: the Deposit Protection Service, MyDeposits and the Tenancy Deposit Scheme. We protect every deposit we hold with the Tenancy Deposit Scheme (TDS).
What is the "prescribed information"?
It is a specific document, not a friendly email. Section 213(5) requires information about the scheme applying to the deposit, the landlord's compliance with the scheme's initial requirements, and how the deposit provisions operate. The detail is set by article 2 of the Housing (Tenancy Deposits) (Prescribed Information) Order 2007 and includes the scheme administrator's name, address, telephone number and email address, the deposit amount, the property address, landlord and tenant contact details, the circumstances in which the deposit may be retained, and the landlord's signed confirmation that the information is accurate.
If you have not received that, ask for it. If you are a landlord and your agent has not served it, that is a live liability sitting on your file.
What can a landlord lawfully deduct?
TDS puts it plainly: the deposit is the tenant's money and should only be kept where the landlord has suffered financial loss, and the landlord should charge only a reasonable amount and evidence the costs incurred.
| A deposit CAN be used for | A deposit CANNOT be used for |
|---|---|
| Rent arrears at the end of the tenancy | Fair wear and tear — the normal ageing of carpets, paint and fittings |
| Unpaid utility bills the tenant owed | Betterment: a new-for-old replacement of a part-worn item |
| Damage beyond fair wear and tear | Any sum the landlord has not actually lost |
| Cleaning back to the check-in standard | A figure with no evidence of the cost incurred |
| Items missing against the inventory | A deduction with no deposit-use clause in the tenancy agreement |
| Gardening back to the agreed condition | The same defect charged twice across two tenancies |
The carpet is the clearest test. TDS's own guidance says that if a tenant damages a carpet after five years in the property, the landlord cannot charge for a brand-new one. Wear and tear is apportioned out; what remains is the landlord's real loss and nothing more. That is why so many claims shrink under scrutiny, which we covered in why most deposit claims are over-claims.
New-build flats have their own trap: developer handover marks, snagging items and first-occupancy dust are not tenant damage. We set that out in new-build deposit claim clauses.
What about rent in advance?
Since 1 May 2026 the deposit is no longer the workaround it used to be. Section 8 of the Renters' Rights Act 2025 inserts section 4B into the Housing Act 1988: terms of an assured tenancy providing for rent to be due in advance "are of no effect so far as they provide for rent to be due in advance", other than initial rent for the first rent period (or a later period ending within 28 days of the start). Six months up front is over. So is a deposit inflated to stand in for it.
What happens if we disagree?
TDS runs a free dispute resolution service for members of both its Insured and Custodial schemes. The landlord's claim and the tenant's response go to an independent adjudicator, who decides on the documents. TDS aims to resolve adjudications within 28 days.
The adjudicator decides on evidence, not assertion. A check-in inventory with dated photographs beats a paragraph of opinion every time. Urban Fox Inventories carry out our check-in and check-out reports precisely so that the comparison is independent of us and of the landlord.
We won't put a claim to the TDS that we can't evidence line by line. A claim we cannot prove costs the landlord the adjudication anyway, and costs the tenant weeks of their own money. We would rather tell a landlord the number is not defensible than lose it for them in writing.
When do I actually get the money back?
Once both sides agree how much is returned, the landlord must return it within 10 days. Undisputed amounts should not be held hostage to a disputed one. Our process for this is on deposit returns, and the wider tenant guide is at tenants.
What if the deposit was never protected?
Section 214(4) of the Housing Act 2004 requires the court to order the landlord to pay the tenant "a sum of money not less than the amount of the deposit and not more than three times the amount of the deposit". On a £2,300 deposit that is between £2,300 and £6,900, on top of returning the deposit itself. For an overseas landlord relying on a UK agent, that penalty follows the landlord.
Sources
- Tenant Fees Act 2019, Schedule 1, paragraph 2(3) — https://www.legislation.gov.uk/ukpga/2019/4/schedule/1
- Housing Act 2004, section 213 — https://www.legislation.gov.uk/ukpga/2004/34/section/213
- Housing Act 2004, section 214 — https://www.legislation.gov.uk/ukpga/2004/34/section/214
- Housing (Tenancy Deposits) (Prescribed Information) Order 2007, article 2 — https://www.legislation.gov.uk/uksi/2007/797/article/2/made
- Renters' Rights Act 2025, section 8 — https://www.legislation.gov.uk/ukpga/2025/26/section/8
- GOV.UK, Tenancy deposit protection — https://www.gov.uk/tenancy-deposit-protection
- TDS, "What can I use my tenant's deposit for?" — https://custodial.tenancydepositscheme.com/news/blog/asktds-what-can-i-use-my-tenants-deposit-for/
- TDS, "How long does an adjudication take?" — https://custodial.tenancydepositscheme.com/news/blog/asktds-how-long-does-an-adjudication-take/
- TDS Custodial, tenant FAQs — https://custodial.tenancydepositscheme.com/tools-and-guides/faqs/tenants/
Speak to the China Desk — Mandarin and Cantonese, on WeChat and by phone, for overseas landlords and international tenants who want the deposit handled correctly from day one. Speak to the China Desk.