Deposit return under Renter's Rights Act eviction?

Deposit return under Renter’s Rights Act eviction?

Broken piggy bank with scattered coins symbolising landlord uncertainty over deposit rules
3:20 PM, 20th November 2025, 5 months ago 22

Looking at the .gov – Renter’s Rights Act: An overview for Landlords, I saw this under ‘Evicting Tenants’.

(After 01 May 2026) If your tenant paid you a deposit, a court will only give a possession order to evict them if you have put the deposit into a government approved tenancy deposit scheme. A possession order will also only be given if you have returned the deposit to your tenant.

https://www.gov.uk/guidance/renting-out-your-property-guidance-for-landlords-and-letting-agents/renters-rights-act-an-overview-for-landlords

My ask is. Can this be right?

What is the point of a deposit under these conditions?

Thanks,

James


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Comments

  • Member Since November 2022 - Comments: 37

    4:38 PM, 21st November 2025, About 5 months ago

    Wouldn’t that then be an HMO?

  • Member Since October 2020 - Comments: 1171

    5:52 PM, 21st November 2025, About 5 months ago

    Reply to the comment left by Cathie French at 21/11/2025 – 16:38
    I think you’re confusing two things. They’re not licensees if you don’t share living accommodation with them. However, if you live in the same converted building as them, (ie not separate purpose built flats), then they’re likely to be non-housing act tenants. They still don’t have too many rights, but you would need a court order to remove them. Most of the RRA will still not apply, but you’d need to check which bits do, possibly with the NRLA.

    If you’re a resident landlord and you own they property, you’re allowed two lodgers before the property becomes an HMO. If you have 3 or more, then it will be an HMO. If there are then 5 or more people in your property, including you and your family, its mandatory licensable. If not, it may still be licensable under local authority additional licensing. Even if its not licensable, you still have to comply with the HMO Management Regulations.

    Letting property is a complex minefield. I suggest you do some training or you could lose a lot of money in fines and penalties.

  • Member Since June 2023 - Comments: 14

    10:26 PM, 21st November 2025, About 5 months ago

    I have my tenants deposit it my bank account! I am now thinking that I must return it before this new bill come into force? I was also going to give them 18 months notice as we plan to return home as we will finally be able to retire and go home. Does this sound okay? We have played very fair and haven’t put the rent up in 3 and a half years.

  • Member Since January 2015 - Comments: 1446 - Articles: 1

    8:54 AM, 22nd November 2025, About 5 months ago

    Reply to the comment left by Sandra at 21/11/2025 – 22:26
    Would need to return anyway regardless.
    Are you self managing? If so did you serve gas safety certificate, How to Rent booklet or email it and EPC prior to signing an AST?
    Have an EICR?
    Projected the deposit if you took one and the deposit was equal to 5 weeks or less of the rent?
    Did you renew the AST annually or is it now a periodic tenancy? If periodic which sort? ie is what happens at the end of the fixed term detailed (Contractual Periodic) or is silent (Statutory Periodic)? If Statutory have you reserved any required tenancy documentation?

  • Member Since May 2015 - Comments: 2197 - Articles: 2

    11:14 AM, 22nd November 2025, About 5 months ago

    Reply to the comment left by Judith Wordsworth at 22/11/2025 – 08:54
    You have highlighted the bureaucratic nightmare that has been unnecessarily inflicted on landlords.

  • Member Since November 2022 - Comments: 37

    11:54 AM, 22nd November 2025, About 5 months ago

    Reply to the comment left by DPT at 21/11/2025 – 17:52
    Thank you for your assistance DPT

  • Member Since August 2014 - Comments: 336

    12:52 PM, 22nd November 2025, About 5 months ago

    Reply to the comment left by Cathie French at 22/11/2025 – 11:54
    Cathy, it sounds to me like you need to get professional advise. If the other people live in seperate flats, with their own lockable front doors then this sounds very much like you are not a ‘resident’ landlord as you live in your own flat. The fact that you own the entire building is largely irrelevant. Who and what is a ‘landlord’ varies according to which bit of legislation you are looking at. And what constitutes an HMO is exceptionally complicated as it depends on whether you are talking about the strict definition of one, or what requires a licence, which varies from one council to the next. It doesn’t sound like an HMO from the details yo have provided.
    Sometimes, the devil is in the detail. If the other flats are truley self contained, and have their own electric, gas and water meters then they really do sound like properties which fall under the various Housing Acts. If a lot of the facilities are shared, then you might be able to get away with calling your tenants lodgers. But just calling a tenant a lodger does not make them a lodger. A Court will look at the facts, such as which facilities are shared, not what you call them.

  • Member Since October 2020 - Comments: 1171

    2:12 PM, 22nd November 2025, About 5 months ago

    Reply to the comment left by Jessie Jones at 22/11/2025 – 12:52
    If Cathie lives in a building which has at some time been converted into separate or partly separate units of accommodation, then she will be a resident landlord and her tenants cannot have ASTs.

  • Member Since November 2025 - Comments: 1

    2:30 PM, 23rd November 2025, About 5 months ago

    Reply to the comment left by Neil Patterson at 20/11/2025 – 16:36
    So if a landlord protects the deposit late, ie beyond the 30 days is the renters rights bill now allowing late deposit protection? As in can a landlord protect a deposit late but before going for a Sec 8 possession and unlike sec 21 the late protection not preventing possession.

  • Member Since October 2020 - Comments: 1171

    10:31 AM, 24th November 2025, About 5 months ago

    My reading of the RRA is that for the purpose of eviction, the 30 day limit on protecting the deposit and the need to serve the Prescribed Information has been disapplied.

    However, a penalty would still be claimable by the tenant and if judges continue to consider such claims as part of a possession hearing, then the deposit penalty awarded may reduce the arrears below the new 3 month threshold.

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