Renters' Rights Act 2025 — What Changed for Tenancy Deposits?

What Is the Renters' Rights Act 2025?

The Renters' Rights Act 2025 is the most significant reform of private renting in England in a generation. It came into force during 2025 and fundamentally changed the legal framework for private tenancies. The Act abolished assured shorthold tenancies (ASTs) — the standard fixed-term tenancy that had been the default since the Housing Act 1988 — and replaced them with a new model of rolling, periodic tenancies.

Other major changes include:

• Abolition of Section 21 "no-fault" evictions
• New strengthened grounds for landlord possession (amended Section 8)
• A new Private Rented Sector Ombudsman
• A national landlord register
• Restrictions on rent increases (single increase per year, capped at market rate)

For deposit purposes, the changes are nuanced. Use our [rental deposit calculator](/rental-deposit-calculator) to check that the deposit you have been or will be charged remains within the correct cap.

The 5/6-Week Deposit Cap — Unchanged

The security deposit cap introduced by the Tenant Fees Act 2019 **remains in force** under the Renters' Rights Act 2025. There is no change to:

• The 5-week cap for annual rent below £50,000
• The 6-week cap for annual rent of £50,000 or above
• The requirement to protect the deposit within 30 days in a government-approved scheme

The Act did not create any new deposit categories or alter the calculation methodology.

Prescribed Information Under Periodic Tenancies

One practical change relates to the timing of prescribed information. Under the old AST regime, prescribed information had to be served within 30 days of receiving the deposit, with a new set triggered each time a fixed term renewed. Under the new periodic tenancy model, there is no renewal — the tenancy simply continues month by month indefinitely.

This means:

• Prescribed information is served once, at the outset, within 30 days of the deposit being received
• There is no "renewal" trigger for re-serving prescribed information
• The deposit remains protected throughout the continuous tenancy until it ends

This simplifies compliance for landlords who previously had to re-serve prescribed information at each fixed-term renewal.

Holding Deposits — Unchanged

The holding deposit rules under the Tenant Fees Act 2019 are not affected by the Renters' Rights Act 2025:

• Still capped at one week's rent
• Still subject to the 15-day Deadline for Agreement
• The same five grounds for retention still apply

Section 21 Abolished — Impact on Deposits

Under the old system, a landlord who failed to protect a deposit or serve prescribed information could not serve a valid Section 21 notice. Since Section 21 has now been abolished entirely, this particular sanction no longer applies in the same form. However:

• Unprotected deposits still attract **1–3× the deposit amount** in court-ordered penalties
• Landlords must still protect deposits to use the possession grounds under the updated Section 8 regime
• An unprotected deposit is likely to be considered by courts as evidence of poor landlord conduct in any contested possession hearing

New Possession Grounds and Deposit Disputes

The Renters' Rights Act 2025 strengthened and extended the mandatory and discretionary grounds for possession under Section 8. Some of the new grounds (particularly those related to anti-social behaviour and rent arrears) can be combined with simultaneous deposit claims, making it important for both landlords and tenants to have their deposit documentation in order before any possession proceedings are issued.

Transitional Arrangements

The Act included transitional provisions for existing tenancies. Tenancies that began as ASTs were converted to the new periodic tenancy model at a specified transition date. Deposits already protected under a government-approved scheme continued to be valid under the new framework — landlords did not need to re-register deposits or re-serve prescribed information simply because the tenancy type changed.

If you began your tenancy before the transition date and are unsure whether your deposit protection is still valid, log in to the relevant scheme (TDS, DPS, or myDeposits) and check using your reference number.

What Has Not Changed for Tenants

• Your deposit is still protected in a government-approved custodial or insured scheme
• You still have access to free ADR if there is a deduction dispute at the end of the tenancy
• The fair wear and tear principle still applies — landlords cannot deduct for normal aging
• The same evidence standards apply in adjudication proceedings