Why Do Landlords Have to Put a Deposit into a Deposit Protection Scheme?

Why Do Landlords Have to Put a Deposit into a Deposit Protection Scheme?

Did you pay a deposit to your landlord for your rented property, and have now heard that they should have put this into a tenancy deposit protection scheme within 30 days of receipt?

But what is it for and why do landlords have to do this?

Well, it’s the law! Landlords who rent a property to tenants with an assured shorthold tenancy have to follow tenancy deposit protection rules (most private tenants have this type of tenancy), and the basis for this requirement is to stop landlords using a tenants deposit as income elsewhere.  It also makes it easier to obtain the return of your deposit when a tenancy comes to an end.

The legal bit

If you paid your tenancy deposit to a letting agent, your landlord may have asked them to protect it on their behalf. Letting agents are subject to the same rules as landlords.

Your deposit does not have to be protected with a tenancy deposit protection scheme if you:

  • are a lodger (you live in the same house as your landlord)
  • stay in student halls of residence
  • have an assured tenancy or a pre-15 January 1989 regulated tenancy

Tenancy deposit protection rules say your landlord must:

  • protect your deposit with a tenancy deposit protection scheme
  • provide you with information about the scheme used

There are 3 scheme providers:

Deposit Protection Service (DPS)

Dispute service (TDS)


Your landlord is legally required to protect your deposit for the whole time you remain a tenant at the same property.


What if your landlord failed to protect your deposit?

If your landlord failed to protect your deposit in one of the government approved schemes, you could be entitled to claim thousands of pounds in compensation!

Start your claim online today – simply fill in our online questionnaire and one of our experienced team will be in touch to let you know whether you have a case.

Return to News

The Law

Landlords have an obligation to pay deposits received from Tenants into a deposit protection scheme.

The law states that every Landlord who takes a deposit from a Tenant has to protect that deposit by lodging it with one of 3 tenancy deposit protection schemes.

The basis for this requirement is to stop Landlords utilising a Tenants deposit monies as income elsewhere and to make it easier to obtain the return of your deposit when a Tenancy comes to an end.

The three schemes are:

The Claim

If a Landlord fails to lodge the deposit with one of the 3 tenancy protection schemes within 30 days of the date on which the deposit was provided by the Tenant the Landlord will be subject to a penalty.

The penalty is likely to be between 1-3 times the amount of deposit paid.

Landlords continue to ignore the law in this regard and to assist Tenants (we do not act for Landlords) we have a team of experienced lawyers operating on cases around the UK enforcing Tenants rights against Landlords and obtaining compensation on behalf of Tenants from Landlords who have failed to comply with their obligations.

Start your claim now

Our Fee

Our review of the claim questionnaire is free.

All claims are dealt with under “No Win No Fee” agreements and the work is conducted by a panel of specialist Solicitors from start to finish.

No payment is required at the outset to start your claim.

You will also be offered After the Event Insurance for increased protection against any adverse costs.

Hey Paul. Just wanted to say thank you for all your hard work, it certainly paid off! I'm treating myself to new flooring in the house. Never dreamed I would get any money back but whoo hoooo I did. You were great, always helped and kept me informed. I would definitely recommend you. Thanks again, take care.

Young Professional, Manchester See all testimonials