Your landlord is legally required to protect your deposit in an approved scheme, and there are strict rules about how and when this must be done. If they fail to comply, you may be entitled to compensation and certain eviction notices may be invalid. Here is what you need to know.
Why should a deposit be protected?
Tenancy deposit schemes exist to ensure your money is handled fairly. They keep your deposit safe, prevent landlords from making unfair deductions and provide neutral dispute resolution at the end of the tenancy. The rules also ensure transparency: you should receive prescribed information explaining where your deposit is held and on what terms.
What if your landlord did not protect your deposit?
If your landlord has not followed the deposit protection rules, this is a breach of their legal duties. The consequences can be significant, and tenants have clear rights in these circumstances.
You can claim compensation
A failure to protect your deposit within the required 30 days, or a failure to provide the prescribed information, enables you to bring a claim against your landlord. You could recover the return of your full deposit plus compensation of up to three times the deposit amount. If you have had more than one tenancy agreement at the same property, multiple breaches may apply, increasing the compensation you can seek.
Section 21 notice
A landlord who has not protected the deposit cannot serve a valid Section 21 notice. A Section 21 notice allows a landlord to end an assured shorthold tenancy without giving a reason, but it is only valid if all legal requirements have been met. If the deposit rules have been breached, any Section 21 issued will be invalid unless the landlord first returns the deposit or resolves the error. This provides important protection for tenants facing unfair eviction attempts.
How can I know if my deposit is protected?
There are three authorised deposit schemes in England and Wales: My Deposits, the Deposit Protection Service (DPS) and the Tenancy Deposit Scheme (TDS). You can check these schemes directly using your postcode, surname, tenancy start date and deposit amount. If you cannot find your deposit in any of them, this could indicate a breach. A solicitor can also carry out checks for you if you are unsure.
Summary
Deposit protection is a legal requirement designed to ensure fairness when your tenancy ends. If your landlord has failed to protect your deposit or provide the correct information, you may be entitled to compensation and they may be prevented from serving a Section 21 notice. If you think the rules have not been followed, speak to a specialist solicitor who can confirm whether you have a claim and help you recover what you are owed.