Tenancy deposit protections to become a subscription?

Hello, We are all used to protecting our tenancy deposits by paying a one-off protection fee (If we use an insurance based scheme rather than a custodial one) however that is all about to change. I’ve just received an email from mydeposits advising me that their scheme will be changing to a subscription model. They don’t state that of course – they dress it up as ‘Fairer pricing and bigger savings’!

Instead of paying a one-off protection fee for a deposit protection and that deposit remaining protected for the lifetime of the tenancy, they now intend to charge an annual fee for each ‘Deposit Allocation’. The theory being that once you release a deposit, that allocation becomes re-usable for a new deposit without any further fee being payable. The end result however is that for a tenancy that lasts say, three years, we will be paying three years of deposit allocation subscription for that single tenancy instead of the one-off fee we currently pay.

From my perspective, there is no meaningful additional service being provided in return. The deposit protection is processed once and may then remain in place until the tenancy ends and the deposit is unprotected.

This is just the latest organisation to attempt to turn their product into a subscription. Having used them exclusively since deposit protection became a requirement, I for one will now be looking at alternatives.

Thank you,

R

Editor’s note: Despite several attempts to clarify the situation, mydeposits has not responded so the email is reproduced verbatim below, apart from the removal of formatting, links and administrative footer material. The email largely confirms the reader’s interpretation. Mydeposits is introducing an annual membership model under which landlords buy deposit allocations, with each allocation covering one active deposit and becoming reusable when that protection ends. For long-running tenancies, this appears likely to replace the current one-off protection fee with a recurring annual cost. However, mydeposits has not clarified how existing protections will be treated or what transitional arrangements will apply.

Your scheme is moving to our Total Property portal on 27 July 2026 – here’s what you need to know

Introducing our new membership and pricing models

Hi,

We’re excited to announce our mydeposits insured-backed deposit scheme is launching onto the Total Property platform on Monday 27 July 2026.

As part of the launch, we are introducing a new membership pricing structure. These updates have been designed with flexibility, simplicity, and better value in mind, making sure the process remains seamless.

Your annual membership fee will be based on the number of deposit allocations you require. We’ve reduced our maximum price per deposit to just £22.00 per year (including VAT). With our new pricing structure, the more deposit allocations you purchase, the lower the cost. NRLA members also benefit from additional discounted pricing, providing even greater value.

What’s changing:

Annual memberships

Your mydeposits membership last for 12 months and includes continued access to all the benefits of mydeposits, including deposit protection, dispute resolution, deposit management tools and ongoing support. At renewal, you’ll simply select the number of allocations you need for the next membership year and pay the corresponding annual membership fee.

Flexible deposit allocations

You’ll purchase a number of ‘deposit allocations’. Each allocation allows one deposit to be protected at any given time. You can purchase additional allocations whenever your portfolio grows, making sure you always have the protection capacity you need.

Reuse allocations throughout your membership year

When a tenancy ends and a deposit protection is closed, the allocation is automatically returned to your account and becomes available to protect another deposit. This means you only need to purchase enough allocations to cover your active protected deposits at any one time. You’re able to reuse allocations as often as needed during your annual membership period.

Better value as your portfolio grows

The more allocations you purchase, the lower the cost per allocation. This means larger portfolios benefit from lower average deposit protection costs, making our new pricing structure even more cost-effective as your portfolio expands.

We understand this is the biggest change to our insured-backed deposit protection scheme since we launched in 2007 and we’re here to support you through these changes. Alongside our insured-backed protection, we continue to offer free custodial deposit protection to all landlords offering a simple and cost-effective alternative.

Please note: We will be sending regular updates to keep you informed about the new system, key dates, and what you need to know during the transition. If you choose to unsubscribe, you may miss important information that helps you stay prepared.