Deposit Protection Service (DPS)

The Deposit Protection Service, known as the DPS, is one of three government-authorised tenancy deposit protection schemes in England and Wales, approved under the Housing Act 2004. It is operated by Computershare Investor Services PLC and is the original and largest custodial deposit protection scheme in the UK, having protected over 7.2 million deposits since its launch in April 2007. The DPS is open to individual landlords, portfolio landlords, and letting agents with no membership requirements or qualifying criteria for the custodial scheme.

The DPS is one of three government-authorised schemes. The other two are the Tenancy Deposit Scheme and myDeposits, which also serves Northern Ireland and offers an insured scheme at a competitive annual fee. All three are equally valid for legal compliance. The choice between them comes down to cost structure, whether the landlord wants to hold the deposit during the tenancy, and personal preference.

DPS Custodial

The DPS Custodial scheme is free to use for all landlords and letting agents. When a landlord receives a deposit, they transfer the full amount to the DPS online. The DPS holds the funds in a ring-fenced account for the duration of the tenancy. At the end of the tenancy, the landlord raises a repayment request through the DPS portal. If the landlord and tenant agree on the amount to be returned, the DPS pays out within a few working days. If there is a dispute, the DPS's free adjudication service reviews the evidence and issues a binding decision.

Interest accrues on deposits held in the custodial scheme. Under the DPS's custodial terms and conditions, interest is only paid to tenants on balances held for 183 days or more that are eligible for final repayment. In practice, interest rates on short-term holdings are modest, and most landlords and tenants are primarily interested in the security and simplicity of the custodial arrangement rather than any return.

DPS Insured

The DPS Insured scheme allows the landlord to keep the deposit in their own bank account while paying the DPS a fee to insure it. The fee is charged per deposit and varies depending on the deposit amount, typically in the range of £13–30. There is no annual subscription, the landlord pays only for the deposits they protect. This suits landlords who prefer a pay-as-you-go approach or who want the deposit funds to remain accessible during the tenancy, for example where they are relying on the interest earned. Any interest on the held funds accrues to the landlord.

From working with self-managing landlords across the UK, the custodial scheme is the right default choice for the vast majority of landlords with small or medium-sized portfolios. The insured option adds cost and administrative responsibility in exchange for liquidity that rarely justifies the trade-off at the deposit amounts involved.

The 30-day deadline and prescribed information

Whichever option a landlord chooses, the deposit must be registered with the DPS within 30 days of receiving it. Registering a deposit with the DPS and serving the prescribed information to the tenant within 30 days are the two legal obligations that must both be met to comply with the Housing Act 2004. Failure to meet either deadline, or both, can result in a financial penalty of between one and three times the deposit value, and may prevent the landlord from relying on certain possession grounds.

Once registered, the DPS provides a deposit ID number (for custodial) which forms part of the prescribed information the landlord must serve on the tenant. The DPS also provides an online deposit checker at depositprotection.com that tenants can use to verify their deposit is protected, search by property address or tenancy details.

Dispute resolution

If a landlord and tenant cannot agree on deposit deductions at the end of the tenancy, either party can refer the dispute to the DPS's free dispute resolution service. Both sides submit evidence, check-in and check-out reports, photographs, invoices, and correspondence, and an independent adjudicator reviews the submissions and issues a decision. The decision is binding on both parties. The DPS processes a high volume of disputes annually, which means its adjudication outcomes are consistent and well-established. Landlords using the DPS's Learning Centre, which includes dispute case studies and webinars, are better placed to understand what evidence adjudicators expect and to structure claims accordingly.

The Renters' Rights Act 2025, in force from 1 May 2026, retains compulsory deposit protection and the prescribed information requirements. The deposit cap, five weeks' rent for annual rent below £50,000, or six weeks' rent for annual rent of £50,000 or more, also remains unchanged. All three schemes, including the DPS, continue to operate within the same legal framework under the new periodic tenancy regime.

For a side-by-side comparison of DPS, TDS, and myDeposits, including cost structure, dispute resolution differences, and which suits different landlord profiles, see the August scheme comparison guide.

Frequently asked questions

Is the DPS free to use?

The DPS Custodial scheme is entirely free for landlords and letting agents. There are no membership fees, no annual charges, and no per-deposit fees on the custodial product. The DPS funds its custodial operations through interest earned on the pooled deposit funds it holds. The DPS Insured scheme carries a per-deposit fee, typically in the range of £13–30 depending on the deposit amount, with no annual subscription required.

How do I register a deposit with the DPS?

Create an account at depositprotection.com and register the tenancy details online. For the custodial scheme, you then transfer the deposit amount by bank transfer to the DPS. For the insured scheme, you retain the funds and pay the protection fee. Once registered, the DPS issues a deposit ID and the documents you need to compile the prescribed information for your tenant.

How do tenants check if their deposit is protected with the DPS?

Tenants can use the online deposit checker at depositprotection.com, searching by property address and tenancy start date. The checker confirms whether the deposit is registered, the type of protection used, and the protection date. Tenants can also contact the DPS customer service team on 0330 303 0030 (Monday to Friday, 8am–6.30pm).

Can landlords outside England and Wales use the DPS?

No. The DPS is authorised to operate in England and Wales only. Landlords with properties in Scotland should use SafeDeposits Scotland or MyDeposits Scotland. Landlords in Northern Ireland should use myDeposits Northern Ireland or TDS Northern Ireland, where separate deposit protection legislation applies.

This entry reflects the DPS's products and the legal framework as of 1 May 2026. Scheme fees and operational details are subject to change, always verify current terms at depositprotection.com before registering a deposit.