Tenancy Deposit Cap
The tenancy deposit cap is the legal maximum you can take as a security deposit from most assured shorthold / assured tenants in England. For new and renewed tenancies, the Tenant Fees Act 2019 limits this to:
Up to five weeks’ rent where the annual rent is below £50,000 and
Up to six weeks’ rent where the annual rent is £50,000 or more.
You cannot contract out of this, split deposits, or take additional “security” payments that, in substance, are part of the deposit. Any amount above the cap is an unlawful fee and must be refunded. Keeping it can lead to enforcement action and make it harder to regain possession.
The deposit cap sits alongside your ongoing duty to protect the deposit in a government-approved scheme (MyDeposits, TDS and DPS) and serve the prescribed information within the statutory timescales.
Under the Renters’ Rights Act, the cap remains a key consumer protection. A attempts to work around it, are likely to be challenged by councils, redress schemes and tribunals. For example by rebadging excess security as extra “advance rent” while still treating it as damage cover. Professional landlords treat the capped deposit as one tool among many, alongside referencing and guarantors, rather than trying to recreate uncapped security by other means.
