Government clarifies deposit rules under Renters’ Rights Act

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Government clarifies deposit rules under Renters’ Rights Act

The government has published new guidance on deposits when giving notice to tenants.

The latest clarification comes as the Renters’ Rights Act comes into force on 1 May 2026.

The government says landlords must place a tenant’s deposit in a government-approved tenancy deposit scheme such as the Deposit Protection Service (DPS), MyDeposits or the Tenancy Deposit Scheme (TDS).

Landlords must show tenant’s deposit was protected

Under its clarification, the government says that to use most possession grounds landlords must show that the tenant’s deposit was protected in a government-approved scheme and that they complied with the scheme’s requirements when the deposit was received.

They must also have provided the tenant with the required information about the deposit protection scheme, known as “prescribed information”.

The guidance adds that a court will only grant landlords a possession order to evict a tenant if deposit requirements have been met.

Landlords must have placed the deposit in a government-approved tenancy deposit scheme, complied with the scheme’s requirements and given the tenant the correct information.

A possession order can also be granted if the landlord has returned the deposit to the tenant, either in full or with any deductions agreed with the tenant. It may also proceed if the tenant challenged the landlord through the court over whether deposit protection requirements were met and the case has since been decided, settled or withdrawn.

However, these rules do not apply to grounds 7A or 14 for antisocial behaviour.

More information on the clarifications can be viewed here.

What details must be included in tenancy agreements

The news comes as the government announced last month what details must be included in tenancy agreements.

The information could be subject to change, with the final version expected in March, but is unlikely to change much before the Renters’ Rights Act comes into force on 1 May.

The government has also confirmed that existing tenancies already in writing will not need to provide a new tenancy agreement, but will be expected to provide a separate information sheet to tenants outlining the changes in the Act or face fines.

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