Most tenants in the private rented sector (PRS) will have a contract called an assured shorthold tenancy (AST) and therefore are legally entitled to have their deposits protected.
There are three Government-approved schemes which protect deposits:
There are three schemes that are registered with the government for this process:
The first scheme (DPS) is a ‘custodial’ scheme, where landlords pay the entire deposit to a third party where it is held until the end of the tenancy. The other two (MyDeposits and The Dispute Service) are ‘insurance’ schemes, where landlords keep the deposit but pay an insurance premium which protects the deposit and provides a means to fairly decide on the amount of deposit returned, if there is a dispute.
These schemes mean there is an impartial third-party to help resolve any disputes which might arise over the deposit at the end of a tenancy.
For deposits protected on or after 6 April 2012:
If you paid your tenancy deposit to a landlord or agent after 6 April 2012, they must protect your deposit within 30 days of receiving it and return your deposit at the end of your tenancy.
Your landlord must provide you with all the information the law requires within 30 days, this includes:
- their contact details
- details of the tenancy deposit protection scheme they are intending to use
- what to do if there is a dispute about the deposit
If a landlord fails to do this, a court can fine a landlord between one and three times the value of the deposit.
For deposits protected before 6 April 2012:
After receiving your deposit, your landlord had 14 days to protect your deposit with one of the three Government approved schemes and provide you with information including contact details and where your deposit is being protected.
If this did not happen, they are liable to pay you three times the amount of your deposit. With the new legislative changes in place, landlords have until 5 May 2012 to properly protect your deposit under the new rules.
If you feel your deposit has been wrongfully withheld, you should use the alternative dispute resolution services available through where your deposit is protected. If your deposit is not protected or you need more help, you should seek advice from your students’ union, Citizens Advice bureau, Shelter or another housing advice agency. You can also download our deposit recovery pack for further information.
Precautions to help you avoid losing your deposit
- Always get a written receipt for the money paid (this should have your landlord's name and address on it).
- Take pictures when you move in and when you move out. Label your photographs with dates and explanations of what they depict. Pictures can be very useful in proving what the condition of the property was when you arrived and when you left.
- Agree an inventory with your landlord before you move in so that they can’t claim for damage done before you moved in. Draw their attention to any outstanding repairs or damage by previous tenants. If you make changes to the inventory, ensure both parties sign and date that they agree with these changes.
- Keep a record of any correspondence with your landlord about repairs. Always try to get this is writing – email is fine – as it is difficult to prove what was said via telephone calls.
What if my deposit is not returned at the end of my tenancy?
you can use the NUS/Unipol Deposit Recovery pack to help get your deposit back.
You can find more information on Tenancy Deposit Protection here.