In this week’s #ExpertView, Michael Hill, Adjudicator and Executive Assistant at TDS, explains how the incoming deposit cap will affect TDS members.

You may have heard, but if not, the incoming Tenant Fees Bill will cap the level of deposit landlords and letting agents in England can collect from tenants to five weeks’ rent for tenancies where the annual rent is up to £50,000.  For those tenancies where the annual rent exceeds £50,000, the deposit will be capped at six weeks’ rent.  The Renting Homes (Wales) Act 2016 is currently being reviewed which is expected to affect fees for Wales.

Whilst the ban is not retrospective, it will mean landlords and letting agents will need to change tenancy agreements for new tenancies beginning after the legislation is introduced to keep on the right side of the law.

Tenants should also be aware of the new rules to ensure they aren’t paying above the legal level.  As well as the cap on deposits, there are implications for letting agents who charge fees from their tenants, with a ban on all fees which relate to the granting, renewal or continuance of a tenancy.

Landlords and letting agents who currently accept the additional deposits for tenants with pets should also be careful not to fall foul of the cap.

The legislation has now received Royal Assent, so landlords, tenants and letting agents must prepare for its implementation.

Further information on the progress of the bill and what it entails can be found on the UK government’s website.

Our partner organisations, the Residential Landlords Association (RLA), ARLA Propertymark, and RICS are all useful points of information on the Bill and its implications for the private rented sector.

For information on how it might affect deposits, you can contact the TDS team.

About the author

Michael Hill

After studying law at university, Michael Hill joined TDS in early 2015. Having started as a caseworker, Michael began working as a full-time adjudicator in September 2015. He currently works part-time as an adjudicator and part-time as executive assistant to the CEO, Steve Harriott. Michael has been responsible for adjudicating in over 2,000 disputes.

About TDS

Tenancy Deposit Scheme (TDS) is a government-approved scheme for the protection of tenancy deposits; TDS offers both Insured and Custodial protection and also provides fair adjudication for disputes that arise over the tenancy deposits that we protect.

We provide invaluable training in tenancy deposit protection and disputes for agents and landlords through the TDS Academy as well as joining with MOL to provide the Technical Award in Residential Tenancy Deposits.

TDS Insured Scheme: where a TDS member can hold the tenancy deposits as stakeholder during the term of the tenancy.

TDS Custodial Scheme: where TDS hold the deposit for the duration of the tenancy.

TDS Academy: TDS provides property professionals with invaluable training in tenancy deposit protection and tenancy deposit disputes.

TDS Northern Ireland: TDS is Northern Ireland’s leading and only not for profit tenancy deposit protection scheme.

TDS can only comment on the process for our scheme, other deposit protection schemes may have a different process/require different steps. Content is correct at the time of writing.

These views are those of the author alone and do not necessarily reflect the view of TDS, its officers and employees.

ARLA|Propertymark: For agents who would like to stay up to date, you can contact Propertymark | ARLA at: By being a member of Propertymark | ARLA you will be eligible for TDS Insured best headline rates.

RLA: If you are a landlord and would like to keep up to date with any changes that may affect you or your responsibilities, you can contact the RLA at: and quote reference: dg715 to receive 25% off your first year’s membership.


Other news stories