Have you forgotten to protect the tenancy deposit?

The guide is currently being updated. Please come back later.

Note that the legal system for renting property changed in Wales on 1 December 2022 with the coming into force of the Renting Homes (Wales) Act 2016. However, the deposit rules in England and Wales remain very similar, so Welsh landlords can still use the guide.

Before we start – the Tenant Fees Act 2019

Under the Tenant Fees Act 2019, there is a strict limit (in England) on the amount of deposit you can take – you can find out all about this and use our handy calculation on the FAQ here.

If you have taken more than the allowed deposit, you should refund the excess as it will be a prohibited payment.

Alternative schemes

There are now ‘alternative’ schemes where the tenant essentially pays a modest fee which provides a guarantee to the landlord that he will receive up to a certain sum if the tenant vacates having caused damage or owing money.

The rules set out in this guide do not apply to these alternative schemes. However, note that tenants cannot be forced to use an alternative scheme and a ‘traditional’ deposit option must always be provided to them.

Members will find a FAQ on alternative schemes here.

The Renters Rights Act

Stage 1 of the Act came into effect on 1 May 2026, so (apart from previously served notices) no-fault evictions in England are now abolished. However, the Act provides that most evictions using the Section 8 procedure will be conditional upon the landlord or his agent having dealt with deposits correctly.

Under the Tenancy Deposit Regulations:

If you want your tenant to leave, you need to use the Section 8 procedure. Or, in Wales, you may want to serve a notice under one of the Welsh ‘no fault’ grounds. However – horrors!

If you haven’t protected the deposit – you can’t use a no-fault ground for possession

What can you do?

There are a number of solutions, which depend on the precise circumstances of your case.

Which is why I have developed ;

The Tenancy Deposit Compliance Checker

This is a special section of Landlord Law designed to help you with this problem. It guides you by a series of questions, to the answer which applies to YOUR tenancy situation.

Then if necessary, you can regularise your position.

The Tenancy Deposit Compliance Checker is a members-only service – so if you are not a Landlord Law member, you’ll need to join before you can use it.

Members – you will see some links under the trail icon. Only use these if you have already followed the full trail, or you may miss something important.

Please now select one of the following buttons:

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