Since 2007 a landlord is required to place your deposit into a tenancy deposit scheme backed by the government.

Commonly, a months deposit is taken, but this can be up to a maximum of five weeks rent.  This amount is required to be held throughout the tenancy for protection against the satisfactory performance by the tenant. These obligations are made under the tenancy agreement but they commonly refer to the condition and upkeep of the property.

The tenancy agreement should state who is responsible to hold the deposit and a number of terms such as the procedures and timescales for an end of tenancy refund, whether interest should be paid and what the deposit can be allocated for.

The recommended method for a deposit to be held throughout the tenancy is by the ARLA member agent as a stakeholder between both the tenant and landlord. This ensures that come the end of the tenancy the agent should get an agreement from both parties before any potential deductions are made for whatever reason.

In the event of a dispute over the deposit a third party will be tasked with handling an independent adjudication to provide a fair resolution for the tenant and landlord. An example of a third party would be the Tenancy Deposit Scheme.