By law, your deposit must be protected in a government-approved scheme within 30 days of payment. Here's how the schemes work, how to check yours, and what to do if a landlord or agent skips this step.
Under the Housing Act 2004, any deposit taken for an assured shorthold tenancy in England and Wales must be protected in a government-authorised tenancy deposit scheme within 30 days of the landlord or agent receiving it.
The landlord or agent must also provide the tenant with prescribed information — a document explaining which scheme holds the deposit, how to get it back, and what happens if there's a dispute.
This applies to almost all private tenancies. The main exception is if you live with your landlord (lodger arrangement), where different rules apply.
There are three government-approved deposit protection schemes in England and Wales. Scotland and Northern Ireland have their own separate schemes.
The largest scheme in the UK. Offers both insured and custodial options. Free dispute resolution service.
Check with TDS →Government-backed scheme. Custodial (free) and insured options. Online account for tenants to track their deposit.
Check with DPS →Runs both insured and custodial schemes. Integrated with property portals and letting agent software.
Check with mydeposits →All three schemes have a free online deposit checker. You'll need:
Check all three — you won't always know which one the landlord used. If your deposit doesn't appear in any of them, it may not be protected.
If a landlord or agent fails to protect your deposit, you can apply to the county court for a penalty. The court can order the landlord to pay you between 1 and 3 times the deposit amount in compensation.
You can also raise this during the tenancy — you don't have to wait until the end. If you're in this situation, Citizens Advice offers free guidance on the application process.
Custodial: The deposit is held by the scheme itself — the landlord never touches the money. Free to use. Most secure for tenants.
Insured: The landlord keeps the deposit but pays a fee to insure it. If there's a dispute, the scheme repays the tenant and recovers from the landlord. Common with larger letting agents.
Both offer the same dispute resolution service. The difference is where the money sits during the tenancy.
At the end of the tenancy, if you and the landlord disagree about deductions, the deposit scheme provides free alternative dispute resolution (ADR). Both sides submit evidence — the check-in inventory, photos, receipts — and an independent adjudicator decides.
The adjudicator's decision is binding. The scheme releases the undisputed portion of the deposit immediately.
Common disputed deductions: cleaning, damage (vs fair wear and tear), missing items, and unpaid rent.
Scotland has three separate schemes: Letting Protection Service Scotland, SafeDeposits Scotland, and mydeposits Scotland. The rules are similar but enforced differently — tenants can apply directly to the First-tier Tribunal rather than going through the county court.
Northern Ireland runs its own scheme operating to similar principles.
An agent or landlord that doesn't protect deposits is either careless or operating outside the rules. Either way, it's worth running a Companies House check to see what else might be going on — dissolved companies, director bans, or a history of short-lived entities.
Free, no sign-up. Live Companies House data.
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