Deposit protection is the rule landlords most often break by accident — and the penalties are brutal precisely because the duty is so simple. In 2026 it matters more than ever, because an unprotected deposit now blocks most routes to possession.
The three duties
- 1Protect the deposit in a government-approved scheme within 30 calendar days of receiving it.
- 2Serve the prescribed information — the scheme details and key terms — within the same 30 days.
- 3Respect the cap: 5 weeks' rent where annual rent is under £50,000, 6 weeks' above.
The 30 days is absolute
There is no grace period and no 'I was busy' exception. The clock starts the moment you receive the money, including a holding deposit that converts. Diarise it the day funds land.
What it costs to get wrong
- A tenant can claim 1 to 3 times the deposit in compensation — per breach.
- Charging above the cap breaches the Tenant Fees Act: up to £5,000 for a first offence, unlimited fines and a banning order for repeats.
- Under the Renters' Rights Act, an unprotected deposit means you cannot rely on most Section 8 grounds — so a £1,200 deposit slip can cost you possession entirely.
Getting it right
- 1Choose a scheme (custodial or insured) before you take any money.
- 2Protect and serve prescribed information on the same day where you can.
- 3Keep the protection certificate and proof of service with the tenancy file.
- 4Re-check protection whenever a tenancy changes — a new tenant or a statutory periodic switch can require fresh steps.
How Rentwire helps
Deposit slip-ups are nearly always timing or paperwork, not bad intent. Rentwire records when each deposit was received, protected and when the prescribed information was served, and flags anything missing — so you can ask "are all my deposits compliant?" and get a straight answer before it becomes a 3× claim or a blocked possession.
Frequently asked questions
- How long do I have to protect a tenancy deposit?
- 30 calendar days from receiving it, with no grace period. You must also serve the prescribed information within the same 30 days.
- What is the penalty for not protecting a deposit?
- A tenant can claim 1 to 3 times the deposit amount in compensation. Since the Renters' Rights Act, an unprotected deposit also blocks most Section 8 possession grounds.
This article is general information for UK landlords and letting agents, not legal, tax or financial advice. Rules change and individual circumstances differ — check the latest guidance from GOV.UK or a qualified professional before acting.