Government Clarifies Deposit Protection Requirements Under Renters’ Rights Act

As the Renters’ Rights Act is set to come into force on 1 May 2026, the UK government has published new guidance clarifying the rules surrounding tenancy deposit protection. This guidance outlines landlords’ obligations to place tenant deposits in government-approved tenancy deposit schemes and to provide tenants with the necessary information, ensuring compliance with the updated legal framework.

Mandatory Deposit Protection in Approved Schemes

Under the new guidance, landlords must secure tenants’ deposits in a government-approved tenancy deposit scheme such as the Deposit Protection Service (DPS), MyDeposits, or the Tenancy Deposit Scheme (TDS). This is a prerequisite for landlords seeking possession of a property under most possession grounds.

Landlords are required not only to protect the deposit but also to comply with the scheme’s procedural requirements at the time the deposit is received. This includes providing tenants with “prescribed information” detailing the protection arrangements.

Possession Orders Linked to Deposit Compliance

The government’s guidance makes clear that courts will only grant possession orders if landlords have met deposit protection requirements. Specifically, landlords must have:

• Placed the deposit in a government-approved tenancy deposit scheme;
• Complied with the scheme’s requirements;
• Provided the tenant with the correct prescribed information.

Possession orders may also be granted if the landlord has returned the deposit to the tenant, either fully or with agreed deductions. Additionally, if a tenant has challenged the landlord’s compliance through the courts and the case has been resolved, possession proceedings may continue.

It is important to note that these deposit protection rules do not apply to possession grounds 7A or 14, which relate to antisocial behaviour.

Implications for Landlords and Letting Agents

For landlords and letting agents, the guidance underscores the critical importance of adhering strictly to deposit protection procedures to avoid delays or refusals in possession claims. Failure to protect deposits or provide prescribed information could result in courts denying possession orders, potentially prolonging tenancy disputes.

Landlords should review their current deposit handling processes to ensure full compliance with the new requirements before the Renters’ Rights Act takes effect.

Tenancy Agreement Requirements and Transitional Arrangements

Alongside deposit rules, the government recently announced the details landlords must include in tenancy agreements under the Renters’ Rights Act. While the final version of this guidance is expected in March 2026, significant changes before the Act’s implementation are unlikely.

Existing written tenancies will not require new tenancy agreements; however, landlords must provide tenants with a separate information sheet outlining the changes introduced by the Act. Failure to do so may result in fines.

Further Information and Resources

Landlords and agents can access the full government guidance on deposit protection and possession proceedings on the official website. Staying informed and prepared will be essential to navigating the new legal landscape effectively.

Suggested internal link anchors

• tenancy deposit protection rules
• government-approved tenancy deposit scheme
• prescribed information for tenants
• possession orders and deposit compliance
• Renters’ Rights Act tenancy agreements
• deposit return procedures
• possession grounds for eviction
• antisocial behaviour eviction grounds
• landlord obligations under Renters’ Rights Act
• deposit dispute resolution

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/