What Is Tenancy Deposit Protection?
Tenancy Deposit Protection (TDP) is a legal requirement in England designed to ensure tenants’ deposits are protected and returned fairly at the end of a tenancy.
Before 1 May 2026
If you take a deposit for an Assured Shorthold Tenancy (AST) in England, you must:
- Protect the deposit in a government-approved scheme
- Do this within 30 days of receiving the deposit
- Provide the tenant with prescribed information within the same 30-day period
Failure to comply can result in financial penalties and may prevent you from serving a valid Section 21 notice.
From 1 May 2026
Under the Renters’ Rights Act 2025:
- Assured Shorthold Tenancies (ASTs) are abolished.
- All existing ASTs automatically convert into assured periodic tenancies.
- All new tenancies are created as assured periodic tenancies from the outset.
What stays the same?
Deposit protection requirements do not change.
If you take a deposit for an assured tenancy in England, you must still:
- Protect the deposit in a government-approved scheme within 30 days
- Provide the tenant with prescribed information within the same 30-day period
Non-compliance can still result in the tenant claiming between one and three times the deposit amount in compensation, along with potential legal restrictions on recovering possession.
Government-Approved Deposit Protection Schemes
There are three approved tenancy deposit protection schemes in England:
Custodial vs Insured Deposit Protection
Custodial Schemes
- The scheme holds the deposit for the tenancy
- Usually free to use
- Commonly used by self-managing landlords
Insured Schemes
- The landlord or agent keeps the deposit
- An annual fee is paid
- Greater responsibility at the end of the tenancy
Prescribed Information Explained
Within 30 days of receiving the deposit, landlords must provide prescribed information to the tenant, including:
- The deposit amount
- The rental property address
- Which deposit protection scheme is used
- How the deposit will be returned
- What happens if there is a dispute
Even if the deposit is protected correctly, failing to serve prescribed information on time can still result in penalties.
What Happens If a Deposit Is Not Protected Correctly?
Financial Penalties
Tenants may be entitled to compensation of one to three times the deposit amount, depending on the circumstances.
Possession Risks After 2026
From May 2026, landlords will generally no longer be able to rely on no-fault possession routes.
This makes compliance and evidence-based documentation even more important.
You can read more in our – Renters’ Rights Act landlord guide.
Why Inventories Matter for Deposit Protection
Deposit protection schemes make decisions based on evidence.
A professional inventory creates a clear record of condition at the start and end of the tenancy.
For landlords operating in London, professionalproperty inventory services in London can significantly reduce deposit disputes.
Common Deposit Disputes
- Cleaning standards
- Damage to walls, floors, and appliances
- Missing or broken items
- Garden condition
- Fair wear and tear disagreements
How to Reduce Deposit Disputes
Deposit Protection Checklist for Landlords
- Protect the deposit within 30 days
- Serve prescribed information correctly
- Use professional inventory documentation
- Carry out interim inspections
- Complete a detailed check-out report
Professional Inventory Services
We provide independent, evidence-based inventory reports for landlords, letting agents, and property managers.
View our transparent pricing or book an inventory report.
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Next read:
Step-by-step Landlord Inventory Checklist
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