Tenancy deposit
Money a landlord holds as security against rent arrears or damage.
4 min read · Updated 2 August 2026
Overview
A tenancy deposit is money a landlord holds as security for the tenant meeting their obligations. Under the Renters' Rights Act 2025 the deposit is capped at one month's rent (replacing the previous five-week cap for most tenancies) and must still be protected in a government-approved scheme within 30 days, with prescribed information served in the same window.
Legal requirements
- Cap the deposit at one month's rent.
- Protect the deposit in an approved scheme within 30 days.
- Serve prescribed information within 30 days.
- Return any undisputed amount within 10 days of agreeing deductions.
Common mistakes
- Taking a deposit above the new one-month cap.
- Failing to protect or serve information, which can lead to a claim of up to three times the deposit.
Frequently asked questions
What is the maximum deposit I can take?
Under the Renters' Rights Act 2025 the deposit is capped at one month's rent and must be protected in an approved scheme within 30 days.
Related terms
This wiki entry is general information for UK landlords and letting agents, not legal advice. Rules differ across England, Wales, Scotland and Northern Ireland — check your local requirements or take advice before acting.