Deposit not protected: landlord penalty and what happens next

If a landlord does not protect a tenancy deposit in a government approved scheme when they should, the tenant can apply to the local county court. If the court agrees, it can order the deposit to be repaid or paid into a scheme, and may order compensation of up to 3 times the deposit.

When does a landlord have to protect a deposit?

Gov.uk says a landlord must protect a deposit in a government approved tenancy deposit scheme (TDP) if the tenant rents the home on an assured periodic tenancy (APT). The page also explains that APTs replaced assured shorthold tenancies on 1 May 2026.

The deadline matters. The landlord or letting agent must put the deposit in the scheme within 30 days of getting it. They also have 30 days from receiving the deposit to give the tenant specific information about the deposit and its protection.

What counts as a deposit, and what does not?

Some payment types are treated differently in the official guidance.

• Holding deposits: Gov.uk says a landlord does not have to protect a holding deposit (money paid to hold a property before an agreement is signed). However, once the person becomes a tenant, the holding deposit becomes a deposit, which the landlord must protect.
• Deposits paid by someone else: The landlord must use a TDP scheme even if the deposit is paid by a third party, such as a rent deposit scheme or parents.
• Valuable items instead of money: If the tenant does not rent the home on an APT, the landlord can accept valuable items (for example a car or watch) as a deposit instead of money, and the items will not be protected by a scheme.

What information must the landlord give the tenant within 30 days?

Protecting the deposit is one part. The official guidance also lists information the landlord must give the tenant. Once the landlord has received the deposit, they have 30 days to tell the tenant:

• the address of the rented property
• how much deposit you’ve paid
• how the deposit is protected
• the name and contact details of the tenancy deposit protection ( TDP ) scheme and its dispute resolution service
• their (or the letting agency’s) name and contact details
• the name and contact details of any third party that’s paid the deposit
• why they would keep some or all of the deposit
• how to apply to get the deposit back
• what to do if you cannot get hold of the landlord at the end of the tenancy
• what to do if there’s a dispute over the deposit

If you are a landlord and you think you have missed the deadline, it is worth checking what you did and did not provide, as well as whether the deposit was protected in time.

How can a tenant check if the deposit is protected?

If a tenant is not sure whether their deposit has been protected, the official guidance says they can contact a tenancy deposit scheme (TDP).

• MyDeposits, including deposits that were held by Capita (telephone 0333 321 9401)
• Tenancy Deposit Scheme (email deposits@tenancydepositscheme.com, telephone 0300 037 1000)
• Deposit Protection Service (telephone 0330 303 0030)

This is useful for landlords too, because it gives a practical starting point for confirming what is registered, and where.

If the deposit is not protected, what can the tenant do?

Gov.uk says the tenant can apply to their local county court if they think the landlord has not used a TDP scheme when they should have. The page also says to get legal advice before applying to court, and notes the tenant does not need a solicitor to do this.

Before court, the guidance also says it can be quicker and cheaper to write to the landlord, rather than going to court. If the tenant cannot come to an agreement, they can apply to the court for compensation.

How a claim is made (and what it costs)

• Apply using Form N208 (Claim form)
• The court fee is £387
• Gov.uk says the tenant can claim the fee back from the landlord if they win the case
• Gov.uk also says the tenant can apply for money off their court fee if they claim certain benefits or have a low income

Deposit not protected landlord penalty: what can the court order?

If the court finds the landlord has not protected the deposit, gov.uk says it can order the landlord to either repay it to the tenant, or pay it into a TDP scheme’s bank account within 14 days.

On top of that, the guidance says the court may also order the landlord to pay the tenant up to 3 times the deposit within 14 days of making the order. This is the key consequence that landlords often mean when they talk about the deposit not protected landlord penalty.

What happens at the end of the tenancy?

The gov.uk page gives two points that matter at the end of a tenancy.

• Returning the deposit when you agree the amount: The landlord must return the deposit within 10 days of both sides agreeing how much the tenant will get back.
• If the deposit was not protected when it should have been: At the end of the tenancy, the court may decide that the tenant will not have to leave the property when the tenancy ends if the landlord has not used a TDP scheme when they should have.

If there is a dispute, the guidance says the deposit will be protected in the TDP scheme until the issue is sorted out.

What if the deposit is protected but there is a dispute, or the landlord cannot be contacted?

Not every deposit problem is about missing protection. Sometimes the deposit is protected, but there is disagreement about deductions or the landlord has gone quiet.

Disputes over deductions

The official guidance says the tenancy deposit protection scheme offers a free dispute resolution service if the tenant and landlord disagree about how much deposit should be returned. The tenant does not have to use the service, but if they do, both sides have to agree to it. Both will be asked to provide evidence, and the decision about the deposit will be final.

If the tenant cannot contact the landlord

Gov.uk says the tenant can ‘raise a dispute’ to get the deposit back if they cannot contact the landlord and the deposit is held by one of the approved TDP schemes. It also warns there may be a limit on the time the tenant has to raise a dispute, and says to contact the TDP scheme as soon as possible.

If the deposit is not held by an approved TDP scheme, gov.uk says the tenant may be able to apply to their local county court to get the deposit back. It also says the tenant should write to the landlord and their letting agent (if they have one) before making a claim, because the landlord or agent may offer to pay the deposit back after they get a letter to avoid legal costs.

Whatever route you take, tracking the deposit paperwork, dates and messages in one place helps you stay on top of what was done and when.