Rent payments and deposits — Rules for England landlords

This guide explains how rent must be paid, what deposit amounts are permitted under the Tenant Fees Act 2019, and the deposit protection rules that apply to all England landlords. Reviewed March 2026.

What the rule is

Rent payments. There is no statute that prescribes the frequency or method of rent payment — these are matters for the tenancy agreement. However, the Tenant Fees Act 2019 restricts what landlords can require:

• Landlords cannot require tenants to pay more rent in advance than the equivalent of one month’s rent (for monthly tenancies). Demanding several months’ rent upfront as a condition of granting the tenancy is prohibited unless the tenancy agreement genuinely structures payments that way from the outset.
• Landlords cannot require a specific payment method if the effect is to impose an additional cost on the tenant (for example, insisting on a payment method that carries bank charges).

Deposits. The Tenant Fees Act 2019 caps the amount of a tenancy deposit a landlord can take:

• Where annual rent is under £50,000: the deposit cap is 5 weeks’ rent
• Where annual rent is £50,000 or more: the deposit cap is 6 weeks’ rent

Charging more than the permitted cap is a prohibited payment. Accepting a prohibited payment is a civil offence and landlords can be required to repay it with a penalty.

Deposit protection. Any deposit taken under an AST must be protected in one of three government-approved schemes within 30 days of receipt:

• Deposit Protection Service (DPS)
• MyDeposits
• Tenancy Deposit Scheme (TDS)

Each scheme offers both custodial and insured options.

When it applies

The deposit cap and protection rules apply whenever a deposit is taken for a residential AST in England, regardless of when the tenancy started. For tenancies that began before the Tenant Fees Act came into force (1 June 2019), any deposit in excess of the cap does not need to be refunded immediately — but at renewal, the excess must be returned.

The 30-day clock for protecting a deposit starts the moment it is received, even if the tenancy has not formally started.

What landlords must do

• Calculate the permitted deposit before accepting any payment. Weekly rent = monthly rent × 12 ÷ 52. Five weeks’ rent = weekly rent × 5.
• Protect the deposit in an approved scheme within 30 days of receipt.
• Serve prescribed information on the tenant (and any relevant person who paid the deposit, such as a guarantor) within 30 days. Prescribed information must include: the scheme used, the scheme’s dispute resolution service, how to apply to the scheme, what to do at the end of the tenancy, and confirmation of the landlord’s address.
• Keep a copy of the protection certificate and proof of prescribed information service.
• Return the deposit at the end of the tenancy within the timescales set by the scheme, less any agreed or adjudicated deductions.

Permitted deductions from a deposit include unpaid rent, damage beyond fair wear and tear, and breach of tenancy obligations. Deductions must be evidenced — a move-in inventory with photographs is essential.

What evidence to keep

• Deposit protection certificate showing the scheme reference number and protection date
• Copy of prescribed information served to tenant (and guarantor if applicable)
• Proof of service — email confirmation or signed receipt
• Move-in inventory with photographs, signed by the tenant where possible
• Move-out inventory for comparison at the end of the tenancy
• Receipts for any deductions claimed

Common mistakes

Taking too large a deposit. Miscalculating the 5-week cap (often by using monthly rent × 5 instead of weekly rent × 5) results in accepting a prohibited payment. The excess must be refunded and a penalty can apply.

Protecting the deposit late. The 30-day window is absolute. Even one day late means the landlord cannot serve a valid section 21 notice (pre-May 2026) and the tenant can claim a penalty of 1-3 times the deposit amount.

Not serving prescribed information to the guarantor. Where a guarantor paid the deposit on the tenant’s behalf, prescribed information must also be served on the guarantor. Missing this is treated the same as failing to serve the tenant.

Requiring rent several months in advance as a workaround for the deposit cap. This is a prohibited payment under the Tenant Fees Act if it is structured as a security against default rather than a genuine advance rent schedule.

Failing to update deposit records when tenancy terms change. If the rent increases and the deposit no longer reflects the new cap, it may need to be adjusted. Always re-check the cap calculation at renewal.

FAQ

How do I calculate 5 weeks’ rent? Divide the monthly rent by the number of months in a year (12), multiply by 52 to get annual rent, then divide by 52 to get weekly rent, then multiply by 5. Shortcut: (monthly rent × 12) ÷ 52 × 5.

Can I take a deposit plus a holding deposit? Yes, but a holding deposit is capped at 1 week’s rent under the Tenant Fees Act and must be refunded or credited against the first payment when the tenancy starts. The tenancy deposit and holding deposit are separate payments with separate rules.

Which deposit protection scheme should I use? All three approved schemes provide equivalent legal protection. The choice is yours. Custodial schemes hold the money; insured schemes let you hold the money yourself but you pay a fee and the scheme underwrites any disputed amount.

What happens if I forget to protect the deposit? The tenant can apply to court for a financial penalty of 1-3 times the deposit, plus repayment of the deposit itself. The court has no discretion — if the deposit was not protected, the penalty is mandatory.

Can a tenant withhold rent because the deposit was not protected? No — rent is a separate obligation. However, an unprotected deposit is a serious compliance breach that courts take into account. Tenants should report unprotected deposits to local councils who can pursue landlords.

Do the deposit rules apply if I take a guarantor instead of a deposit? No. A guarantor agreement (where a third party agrees to cover losses) is not a deposit and does not fall under the deposit protection rules. However, holding cash from a guarantor as security would be treated as a deposit.