Everything You Need to Know About Tenancy Deposits in the UK

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If you’re renting out property in the UK, tenancy deposits are a legal requirement you can’t afford to get wrong. They protect landlords against damage or unpaid rent, while giving tenants peace of mind that their money is safe and will be returned if they meet the terms of the tenancy.

Here’s a complete guide to how tenancy deposits work in the UK, how much to charge, and what landlords must do to stay compliant.

What Is a Tenancy Deposit?

A tenancy deposit is a sum of money paid by a tenant at the start of their tenancy. It covers potential:

• Unpaid rent

• Property damage beyond fair wear and tear

• Cleaning costs if the property is left in poor condition

• Replacement of missing or broken items

At the end of the tenancy, the deposit should be returned in full unless valid deductions are agreed.

How Much Can a Landlord Charge?

Under the Tenant Fees Act 2019, the maximum tenancy deposit landlords can ask for in England is:

• Five weeks’ rent where the annual rent is less than £50,000

• Six weeks’ rent where the annual rent is £50,000 or more

How to Calculate a Deposit:

1. Work out weekly rent: (Monthly rent × 12) ÷ 52

   Example: £1,200 per month × 12 = £14,400 ÷ 52 = £276.92 per week

   
   

2. Multiply by weeks allowed:

• 5 weeks’ rent = £276.92 × 5 = £1,384.60 maximum deposit

The Tenancy Deposit Protection (TDP) Schemes

In England and Wales, landlords must protect deposits in one of three government-approved schemes within 30 days of receiving it:

• Deposit Protection Service (DPS)

• MyDeposits

• Tenancy Deposit Scheme (TDS)

These schemes ensure the tenant’s money is safe and disputes are handled fairly.

Landlord Responsibilities

As a landlord, you must:

• Protect the deposit within 30 calendar days of receiving it.

• Provide the tenant with prescribed information about where and how their deposit is protected.

• Return the deposit within 10 days of agreement at the end of the tenancy, minus any deductions.

Failure to comply could mean:

• A penalty of up to three times the deposit amount, and

• Loss of the right to serve a Section 21 notice to regain possession.

What Can Be Deducted from a Deposit?

You may make deductions for:

• Unpaid rent or bills

• Damage beyond fair wear and tear

• Replacing missing furnishings or appliances

• Excessive cleaning if the property is not left in a reasonable condition

  
  

⚠️ Wear and tear is not deductible — for example, faded paint, minor carpet wear, or worn hinges.

Tenant Rights

Tenants should:

• Receive written confirmation of how their deposit is protected.

• Be given a clear explanation of any deductions.

• Have access to the free dispute resolution service if they disagree with deductions.

Best Practices for Landlords

✅ Always use a detailed inventory with photos at check-in and check-out.

✅ Keep all communication and receipts in writing.

✅ Be fair and transparent when calculating deductions.

✅ Return deposits promptly to avoid disputes.

Final Thoughts

Tenancy deposits in the UK are highly regulated, and for good reason — they protect both landlords and tenants when handled correctly.

👉 At Maple Management Services, we ensure deposits are calculated correctly, protected in a government-approved scheme, and returned smoothly at the end of tenancies. Whether you’re a first-time landlord or managing a large portfolio, we take care of compliance so you don’t have to.