Deposit Protection
Glossary
Deposit Protection
Deposit protection is the UK legal requirement that a residential landlord must protect any tenancy deposit in a government-approved scheme within 30 days of receiving it, and give the tenant prescribed information about the scheme.
The three approved schemes in England and Wales are: the Deposit Protection Service (DPS, custodial — free), MyDeposits (custodial or insurance), and TDS (Tenancy Deposit Scheme — custodial or insurance). Failure to protect a deposit or serve the prescribed information within 30 days has serious consequences: the landlord cannot serve a valid Section 21 notice until the deposit is returned or protected, and the tenant can claim 1-3× the deposit in compensation.
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