Written by Daniel Andrews, Partner & Solicitor, Cramp & Mullaney LLP
Last reviewed: April 2026
Tenancy deposit protection has been a legal requirement in England since 2007, but many landlords remain unclear about the precise obligations and the consequences of non-compliance. Under the Renters’ Rights Act 2025, the link between deposit compliance and the ability to pursue possession proceedings is stronger than ever. A failure that might previously have been an inconvenient technical irregularity can now block a possession claim entirely. This article explains what the rules require and what both landlords and tenants need to know.
The Basic Requirements
When a landlord receives a tenancy deposit, they must protect it in one of the three government-authorised tenancy deposit schemes within 30 calendar days: the Deposit Protection Service, MyDeposits, or the Tenancy Deposit Scheme. Within the same 30-day period, the landlord must also serve the prescribed information on the tenant. The prescribed information includes details of the scheme used, what to do at the end of the tenancy, and what happens in the event of a dispute.
The maximum deposit that a landlord can require is five weeks’ rent where the annual rent is below £50,000. The holding deposit, which a landlord may take while references are being processed, is capped at one week’s rent and must be deducted from the first month’s rent or the security deposit.
The Link to Possession Proceedings
Under the new regime, a landlord who has not correctly protected the deposit and served the prescribed information cannot rely on Section 8 possession grounds until those failures have been remedied. This means that if you are a landlord with a deposit compliance failure and you need to recover your property, you cannot simply ignore the problem and press ahead. You will need to address it first, which may involve returning the deposit to the tenant temporarily, re-receiving it, protecting it correctly, and serving the prescribed information. You may also face a financial penalty of between one and three times the deposit amount for the original failure.
How to Check If Your Deposit Is Protected
Tenants who are unsure whether their deposit has been correctly protected can check for free on the websites of all three authorised schemes. Enter your postcode and tenancy start date. If your deposit is not found in any of the three schemes, contact your landlord in writing immediately, requesting that it be protected and the prescribed information served. If the landlord fails to comply, you have the right to apply to the county court for a penalty of between one and three times the deposit amount.
A Priority for Landlords Before May 2026
Every landlord should treat a deposit protection audit as a priority before 1 May 2026. For every tenancy, confirm that the deposit is in an authorised scheme, that the prescribed information was served within 30 days, that the amount registered matches the amount received, and that the scheme records are up to date. If you find any failures, take steps to remedy them before they become relevant to possession proceedings.
If you are a landlord in Kent and need advice on deposit compliance or are dealing with a deposit dispute, our housing law team can help. We also act for tenants whose deposits have not been correctly handled.
If you are a landlord or tenant in Kent and need advice on the Renters' Rights Act 2025 or any landlord and tenant matter, Cramp & Mullaney LLP can help. We advise clients across Kent and the South East from our offices in Eastbourne (01323 720581) and Battle (01424 533222), East Sussex. We offer a fixed fee 30-minute initial consultation.
This article is for general information only and does not constitute legal advice. If you need advice about your specific situation, please contact Cramp & Mullaney LLP on 01323 720581 (Eastbourne) or 01424 533222 (Battle), or email us at info@cmlaw.co.uk. We are authorised and regulated by the Solicitors Regulation Authority (SRA No. 598851).
