What Changed on 1 May 2026 - The Renters Rights Act 2025
The Renters Rights Act 2025 is the biggest reform to private renting in England since the late 1980s. Phase 1 came into force on 1 May 2026, converting all Assured Shorthold Tenancies (ASTs) into Assured Periodic Tenancies (APTs) and abolishing Section 21 no-fault evictions.
Key changes from 1 May 2026:
- All ASTs converted to Assured Periodic Tenancies - no more fixed-term endings
- Section 21 no-fault evictions abolished - landlords need a legal reason to evict
- Rental bidding banned - landlords cannot accept rent above the advertised price
- Rent in advance capped at one month - landlords cannot demand multiple months upfront
- Rent increases limited to once per year with 2 months' notice via Section 13 notice
- Deposit protection becomes a precondition for any possession order
Under the Renters Rights Act, no possession order can be granted on most Section 8 grounds unless the deposit has been properly protected and prescribed information served. An unprotected deposit now blocks eviction - giving tenants significantly more leverage than before.
How UK Tenancy Deposits Work
In England, landlords must protect your deposit within 30 days of receiving it in one of three government-approved schemes:
- Deposit Protection Service (DPS)
- Tenancy Deposit Scheme (TDS)
- mydeposits
The deposit cap remains unchanged at five weeks' rent for annual rents below £50,000, and six weeks' rent for annual rents of £50,000 or more.
Your landlord must also serve you with Prescribed Information about the deposit scheme within 30 days. Failure to protect the deposit or serve prescribed information within 30 days entitles you to claim compensation of one to three times the deposit amount through the county court - regardless of whether you suffered any actual loss.
What Landlords Can and Cannot Deduct From Your Deposit
Under the Tenant Fees Act 2019 and the Renters Rights Act 2025, deposit deductions must be for genuine costs only. Landlords can claim for:
- Damage beyond fair wear and tear
- Outstanding rent
- Professional cleaning if the property was not left in a clean condition comparable to move-in
- Replacement of items damaged or removed by the tenant
Landlords cannot deduct for fair wear and tear. This is the normal deterioration from everyday living - minor scuffs, light carpet wear, small marks. In practice, what constitutes fair wear and tear depends on the length of the tenancy, the age of items, and the quality of finishes at move-in.
How to Dispute a Deposit Deduction in England
Request the deposit back in writing
After vacating, write to your landlord or agent requesting the deposit return. Keep a record of when you sent this and any response.
Review any proposed deductions
Your landlord must give you a breakdown of any deductions with supporting evidence. If deductions are proposed, compare them against your move-in and move-out BondProof report.
Raise a formal dispute with the deposit scheme
If you cannot agree, contact the deposit scheme that holds your deposit. All three schemes (DPS, TDS, mydeposits) offer free Alternative Dispute Resolution (ADR). You do not need to go to court for most disputes.
Submit your evidence to the adjudicator
The ADR adjudicator reviews evidence from both parties. Your BondProof move-in and move-out report - with timestamped before and after photos - is the most effective evidence format.
Receive the adjudicator's decision
Most ADR decisions are made within 28 days. The decision is binding on both parties if you chose the free ADR service. Court action is a further option if you prefer.
Document your property before it is too late
10 minutes at move-in or move-out. A timestamped PDF you can use in any dispute.
Get BondProof - AndroidWhat Happens If Your Landlord Did Not Protect Your Deposit
If your landlord failed to protect your deposit within 30 days, or failed to serve you with prescribed information about the scheme, you can claim compensation through the county court of one to three times the deposit amount. This is separate from any dispute about the deposit amount itself.
Under the Renters Rights Act 2025, an unprotected deposit also prevents your landlord from obtaining a possession order against you on most Section 8 grounds. If you are facing eviction and have reason to believe the deposit was not properly protected at any point, raise it immediately.
Fair Wear and Tear in England
Fair wear and tear is the core defence in most UK deposit disputes. The deposit scheme adjudicators apply a consistent test: what would a reasonable person expect to find at the end of a tenancy of this length, in a property of this age and standard?
Move-in photos showing the condition of carpets, walls, and fixtures at the start of the tenancy are the most effective evidence for establishing what was pre-existing and what constitutes fair wear and tear. Without them, the adjudicator has only the landlord's claim and checkout report to assess.
The Private Rented Sector Database - Coming Late 2026
From late 2026, a new national database for the private rented sector will be rolled out in England. All landlords will be required to register. This will make it easier to check whether a landlord has a history of deposit disputes or compliance issues - an additional tool for tenants before signing a new tenancy.
Scotland and Wales
The Renters Rights Act 2025 applies in England only. Scotland abolished no-fault evictions in 2017 under the Private Residential Tenancy regime. Wales operates under the Renting Homes (Wales) Act 2016. Deposit protection requirements exist across all nations but the specific rules differ - check the relevant legislation for your location.