Deposit return under Renter’s Rights Act eviction?

Government response below

A Ministry of Housing, Communities and Local Government spokesperson told Property118: “The Renters’ Rights Act will allow a court to award possession if the landlord has stored a tenancy deposit in a government-approved scheme (and complied with related legal requirements), or returned the deposit to the tenant, either in full or with deductions as agreed between the tenant and landlord.

“The court can also award possession if a separate, specific court process has been undertaken to determine whether the deposit was stored appropriately.

The Renters’ Rights Act does not change what will count as a valid deduction from a deposit, which includes unpaid rent and bills.

More specifically, a court will only be able to award possession if, at the time of a possession hearing:

The landlord can demonstrate the deposit is being held in a government-approved deposit scheme, they complied with the relevant scheme requirements and they have provided the tenant with the legally required information about the deposit, as set out in existing tenancy deposit rules; or
The tenancy deposit has been returned in full to the tenant; or
The tenancy deposit has been returned with deductions, that were agreed between the landlord and tenant; or
An application was made to the county court (under section 214(1) of the Housing Act 2004), for a determination on whether the landlord stored the deposit correctly in an approved scheme or complied with other related tenancy deposit requirements, and the case has been determined by the court, withdrawn or settled between the parties.

Returning the deposit to the tenant isn’t necessary if it’s been correctly protected in a government – approved deposit scheme.

Am I the only one who gets a little confused?

When I took back the management of the portfolio I registered the deposits with TDS, however I was given the option to retain the money myself rather than sending it to TDS.

I opted to retain the deposits and have held them within a savings account, fully intending to return both deposit and interest, (minus any agreed costs), when tenants leave.

I’m assuming that in an eviction scenario I will be compliant etc?

Reply to the comment left by Tim Rogers at 21/11/2025 – 10:12
Do you mean that you were advised to either:-
1. Register the deposits with TDS Custodial Scheme, where the money is sent to the TDS.
2. Register the deposits with TDS Insured Scheme, where you hold the money.

Either way your deposits should have been registered with the deposit scheme which is what will be compliant.

All this talk of evicting Tenants is a bit misleading, you can still ask a Tennant to leave with appropriate notice. For instance I am in the process of selling up and each tenant I explained this to left without any problem.

Looks pretty standard for Govt guidance. Either ambiguous or inaccurate.

I am a resident landlord of one of the 3 flats in a converted building. As such I am not able to offer a standard AST but a licence to occupy only which is not subject to Housing Law as an AST is. A resident Landlord therefore is not obliged to register a deposit so I would like to understand what happens in this context if anyone is able to advise please.

Assuming that you share living accommodation with your lodger, you are outside the majority of the RRA and there is no requirement for you to protect a deposit and therefore no penalty if you dont.

Awards law and the Decent Homes Standard will apply when they come into being, but thats a few years away.

Reply to DPT, Thank you. We all share the same entrance, hallway and staircase but each have our own front door off the hallways/landings. I take it that your advice still applies?

No. Unless you share kitchens, lounges and or bathrooms, its likely that theyre not licensees