Hi Tajinder - the following is copied from the DPS website and it is clear that surplus deposit monies do not have to be returned unless you are entering a ‘new fixed term’ with your current tenants. If the tenancy agreement will become a rolling agreement i.e. will end with the appropriate amount of notice being given by either the tenant or the landlord, then you do not have to return any deposit. DPS Quote follows:
*The cap applies to all new/renewed tenancies including shorthold/student
These changes will apply to ALL new tenancies entered into from 1 June 2019 , and any existing tenancies that are renewed on a fixed-term basis. It doesn’t affect any tenancies signed before 1 June 2019 (irrespective of when the tenant actually moves into the property), although the change will apply to any future fixed-term renewals. :
You’re not required to re-serve Prescribed Information
There are no special provisions or exemptions if the tenant has a pet. The maximum deposit amount allowed must still fall within the compliance thresholds above.