Tenancy Deposits

Overview

A tenancy deposit is a sum of money that you pay to your landlord or letting agent before you move in.
The deposit is your money and you should get it back when your tenancy ends, but your landlord could keep some or all of it for things like:

  • missed rent payments
  • damage to the property

How much is a deposit?

Security deposits are legally capped at the equivalent of 5 weeks’ rent (or 6 weeks’ rent if the total annual rent is £50,000 or more).

Landlords and letting agents are capped at taking a maximum of 1 week’s rent to hold a property while referencing checks are completed

Students will probably have to pay a deposit for accommodation in halls. This is to secure against any damage or rent arrears at the end of your agreement. You may also be charged an administration fee to cover the administration costs of booking a room. This is sometimes referred to as a ‘booking’ fee and is often non-refundable.

Deposit Protection

Deposit protection is only for tenants with assured periodic tenancies (APT) (all assured shorthold tenancies became APT’s on 1st May 2026)
Your landlord or agent must:

  • register your deposit with a deposit protection scheme within 30 days
  • give you certain written information about the scheme they use
  • keep your deposit protected during the tenancy

Check your deposit is protected with one of the 3 deposit protection schemes.

All 3 providers have:

  • an insurance scheme – where the landlord or agent holds the deposit
  • a custodial scheme – where the scheme keeps the deposit during the tenancy

They all have a free dispute resolution service if you cannot agree about deductions or the return of your deposit when your tenancy ends.

A landlord or agent might suggest you use a ‘zero deposit‘ company. This is sometimes called deposit replacement insurance. Letting agents often get commission from these companies.
You do not pay a tenancy deposit if you use these companies. But there are other costs and you do not get the money back when you leave.
Your landlord or agent cannot make you use a zero deposit company. They can only say it is an option for a tenancy deposit.

If your landlord does not protect your deposit in a tenancy deposit scheme

You can apply to your local county court if you think your landlord has not used a TDP scheme when they should have.

It can be quicker and cheaper to write to your landlord, rather than going to court.
If you cannot come to an agreement, you can apply to the court for compensation using Form N208.
The court fee is currently £377. You can claim this back from your landlord if you win your case.
You can apply for money off your court fee if you claim certain benefits or have a low income.

Before filing your claim, the court requires compliance with the Practice Direction on Pre-Action Conduct and Protocols. This ensures litigation is an absolute last resort.
You must give the other party an opportunity to resolve the dispute or consider Alternative Dispute Resolution (ADR).
Failing to send a letter before claim could result in the court penalizing you on costs, even if you win the case

If the court finds your landlord has not protected your deposit, it can order them to either:

  • repay it to you
  • pay it into a TDP scheme’s bank account within 14 days

The court may also order the landlord to pay you up to 3 times the deposit within 14 days of making the order.

Return of deposit – if your landlord used a deposit protection scheme

You could get your deposit back as soon as you and your landlord have agreed on the amount.
This could be the same day as the inspection if there are no problems. But it may take a few days.
Your landlord or agent might say they want to keep some of your deposit. They should give the rest of your money back.
Getting part of your deposit back does not mean that you agree your landlord should keep the rest of your money. You can still challenge unfair deductions.

Letter template (from Shelter): To ask for a deposit refund

You can use this letter template after 7 -10 days

[Use the subject: Return of my deposit]

I’m the former tenant of [your previous address].

I’m contacting you about the refund of my tenancy deposit.

My tenancy ended on [tenancy end date].

The property has been left in good order and the rent was fully paid.

Please refund the full £xxx within 10 days of receiving this email.

You can also download the letter template to send an attachment or letter:

When to contact a deposit protection scheme

The scheme providers could help if:

  • you cannot agree the return of your deposit with your landlord
  • the landlord does not reply to your email

Check which deposit scheme protects your money 

You can ask for a full refund if it has been at least 2 weeks since the tenancy ended and you your landlord is not being co-operative:

Your deposit protection scheme asks for evidence if you raise a dispute.

The scheme decides if you should get your full deposit back or if your landlord can keep some. They look at evidence from your landlord and from you.
You do not need to send the evidence until the scheme asks for it.
Get as much evidence as you can together to show why you should get your deposit back, such as check-in/check-out reports, photographs, videos and correspondence (emails and letters)

Last Updated on May 28, 2026 by Ashford Advice