Landlords need to get deposit protection right. If you take a tenancy deposit, it must be protected in a government-approved scheme within 30 days, and the tenant, together with anyone who paid the deposit on the tenant’s behalf, must be given the required prescribed information within the same 30-day period.
This is a common source of claims against landlords. A deposit may have been protected, but there can still be a breach if the prescribed information was late, incomplete, unsigned where required, or not served on every relevant person. If the rules have not been followed, a tenant can bring a claim under section 214 of the Housing Act 2004 and the court must order the landlord to pay between one and three times the deposit, in addition to dealing with the deposit itself.
Deposit protection also affects possession claims. Since 1 May 2026, private landlords can no longer serve section 21 notices to end assured tenancies, and possession must usually be pursued using the revised section 8 grounds. However, deposit compliance still matters. To use most possession grounds, landlords must be able to show that the deposit was protected, the scheme requirements were complied with, and the prescribed information was given. If this cannot be proved, or the deposit has not been returned, the landlord may be restricted on the grounds they can rely on.
The key point for landlords is to check the paperwork before there is a dispute or before taking possession steps. You should be able to evidence when the deposit was received, where it was protected, when the prescribed information was served, who it was served on, and whether the tenancy has been renewed or varied since the deposit was first taken.
If there is a problem, deal with it early. Depending on the facts, the solution may involve serving missing information, correcting defective documents, returning the deposit, agreeing deductions, settling a claim, or adjusting the possession strategy.
Our specialist property litigation team act nationally and advise landlords, property investors and letting agents on deposit protection issues, deposit claims and possession strategy under the Renters’ Rights Act 2025. If you are concerned about a deposit issue we’d love to assist you.