Rental Deposit Rules UK 2026 — How Much Can a Landlord Charge?

How Much Security Deposit Can a Landlord Charge in 2026?

Since the Tenant Fees Act 2019 came into force on 1 June 2019, landlords and letting agents in England are legally prohibited from charging a security deposit that exceeds a prescribed cap. Getting this calculation right matters — both for tenants who want to budget accurately before moving in, and for landlords who risk having to repay an overcharged deposit plus penalties.

Use our [rental deposit calculator](/rental-deposit-calculator) to work out the exact cap for any weekly or monthly rent figure.

The 5-Week Cap Explained

For the vast majority of tenancies, the maximum security deposit is **five weeks' rent**. This applies regardless of the length of the fixed term or whether the landlord uses a custodial or insured protection scheme.

To calculate five weeks' rent:

> **(Monthly rent × 12) ÷ 52 × 5**

**Example:** If your monthly rent is £1,200, your annual rent is £14,400. Dividing by 52 gives a weekly rent of approximately £276.92. Multiplying by five produces a deposit cap of **£1,384.62**. A landlord asking for £1,500 would be in breach of the Act.

The 6-Week Exception

The cap rises to **six weeks' rent** only when the annual rent is **above £50,000**. This threshold is based on the contractual rent stated in the tenancy agreement, not the market value of the property.

For annual rent of £60,000 (£5,000/month):

> £60,000 ÷ 52 × 6 = **£6,923.08**

This higher cap recognises that landlords letting high-value properties face proportionally larger potential losses from damage.

What Counts as "Rent" for the Calculation?

The cap is calculated on the agreed contractual rent — the base rent you pay for the property. It does not include:

• Service charges billed separately
• Utility bills paid directly to suppliers
• Council tax (if the tenant is responsible)
• Parking spaces charged separately from the tenancy

If your tenancy agreement bundles any of these into an all-inclusive rent figure, speak to a housing solicitor or contact Shelter for advice on how the cap should be applied.

What Happens If a Landlord Charges Too Much?

A deposit that exceeds the permitted cap is classified as a **prohibited payment** under the Tenant Fees Act 2019. The consequences for landlords are significant:

1. **They must repay the excess** — not just the overcharge, but potentially the entire deposit depending on how the tribunal rules.

2. **They cannot serve a valid Section 21 notice** (or its replacement under the Renters' Rights Act 2025) while holding a prohibited payment.

3. **They may be fined** up to £5,000 for a first offence; a subsequent offence within five years can lead to a fine of up to £30,000 and a banning order.

Tenants who believe they have been overcharged should first write to the landlord or agent requesting repayment, then escalate to their local council's Private Sector Housing team if the landlord refuses.

Permitted Payments vs Prohibited Payments

The Tenant Fees Act does not prohibit all upfront costs — it sets out a short list of **permitted payments**:

Deposits Under the Renters' Rights Act 2025

The Renters' Rights Act 2025 abolished assured shorthold tenancies (ASTs) and replaced them with periodic tenancies from the point the Act came into force. The deposit cap rules introduced by the Tenant Fees Act 2019 remain unchanged — the 5/6-week cap continues to apply. However, with all tenancies now periodic by default, the deposit protection rules around serving prescribed information have become even more important since there is no fixed-term end date to reference.

Calculate Your Deposit Cap

Before agreeing to a tenancy, confirm the deposit figure against the legal cap. Use our [rental deposit calculator](/rental-deposit-calculator) to get an instant calculation based on your weekly or monthly rent — and to check whether the amount your landlord is asking for is within the law.