Do you need to lower your tenancy deposit amounts?

The government has provided clarification on deposit cap requirements following the end of the transition period on 31 May.

For tenancies in England, the Tenant Fees Act came into force on 1 June 2019, making it illegal for landlords and letting agents to charge certain fees in connection with a tenancy.

A key part of the legislation was the capping of tenancy security deposits at the equivalent of five-weeks' rent for assured-shorthold tenancies with an annual rent of up to £50,000, or six-weeks' rent for tenancies with an annual rent of £50,000 or more.

To help landlords and letting agents check their compliance with the cap, The DPS has produced a simple flowchart - see below - guide to help landlords and letting agents understand whether they need to lower their tenancy deposit amounts.

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