legal
Deposit protection scheme
A deposit protection scheme is a government-approved tenancy deposit scheme in England and Wales that safeguards a tenant's deposit. Landlords must protect the deposit in an approved scheme within 30 days of receiving it.
In simple terms
A deposit protection scheme safeguards a tenant's deposit. A landlord must protect it within 30 days, or face court-ordered penalties.
Example
A landlord takes a deposit from a tenant and pays it into an approved scheme within 30 days. When the tenancy ends, the landlord and tenant agree the amount owed and the deposit is returned within 10 days of that agreement.
If you're buying
GOV.UK names three approved schemes: Deposit Protection Service, MyDeposits and Tenancy Deposit Scheme. Your landlord or letting agent must put your deposit in the scheme within 30 days of getting it. The landlord must return the deposit within 10 days of both parties agreeing the amount due, and a disputed deposit stays protected until the dispute is resolved. GOV.UK also says assured periodic tenancies replaced assured shorthold tenancies on 1 May 2026, so check which applies to the tenancy. If a landlord does not protect a deposit, the court can order it repaid, or paid into a scheme, within 14 days, and can order the landlord to pay up to 3 times the deposit. GOV.UK gives the court fee for the claim as 387 pounds, which can be claimed back from the landlord if the tenant wins. Investors buying let property should ask the seller for the scheme certificate and deposit details, and check the deposit is correctly dealt with on completion. (Sources read 30 October 2026: GOV.UK tenancy deposit protection; GOV.UK, if your landlord does not protect your deposit.)
If you're selling
If you are selling a let property, give your solicitor the tenancy agreement, scheme certificate and deposit details. The deposit and its protection will need to be dealt with at completion, and an unprotected deposit can cause problems for the buyer. Agree who holds the deposit before exchange.