New Deposit Law For Existing Tenants

My tenants started living at my property from 1st Dec 2018. The monthly rent is £1100. I took £1500 for the deposit then. With the new deposit law (5 weeks deposit) coming on 1st June 2019, do I need to return back the extra money to my tenants. I dont mind returning it. I would like to know if the new law will be applicable for the new tenants only or will it be for the existing tenancy as well please?



Thanks for raising this, I have the same question. Anyone ?

Hey Lara and @Tajinder, Sorry to have missed this!

Common question I’m hearing from a few landlords.

You don’t need to return the extra deposit until either:

  • 1st June 2020, or
  • you renew you existing tenancy

You can use this calculator to easily find your maximum deposit and holding deposits.

Hope that clears it up, do let me know!

Hi do you return part of a deposit from a dps?


You need to release the deposit on DPS. Part to you and part to the tenant. Then re register the returned amount to you.

Inform the tenant to accept the part deposit to speed up the process.

After you have re registered the deposit, you can send then the prescribed information which you can get online through DPS.

Also don’t forget to note the new deposit amount on the renewal agreement.

Hope this makes sense.

1 Like

5 weeks rule is for both new and existing tenancy.

Hi Sheetal, the new rules apply to new tenancies from 1st June 2019.

They apply to existing tenancies from 1st June 2020.


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.

1 Like

Thank you for pointing this out to me. I was given difference advice.



I’ve had both options re surplus deposits quoted as correct. The best advice I can get seems to be, “You probably don’t need to return the excess but a Section 21 court might find otherwise, so probably best just to do it anyway.” What is illegal after June 2020 is to request additional payments. The moot point is whether a surplus deposit that has already been paid pre 1/6/2019 is a request for an additional payment. Apparently a court could find that it is. I plan to watch this space and in the meantime keep the surplus deposit, referring tenants to the MyDeposits guide if they query it.

1 Like

Hi all, just popping up here to update you on this issue of returning deposits amounts in excess of 5 weeks’ rent.

Gov guidance published in July later made it clear that:

  • landlords will not have to return the excess deposit on 1st June 2020, but
  • landlords will have to return the excess deposit if renewing the tenancy with a new fixed term

Hope that is clear! Let me know if not.

I have also written a guide on how to initiate a repayment in the event of a renewal, here.


Hi Sam

Thank you for replying back.

I am re-newing contract. I have lowered down the deposit to meet the expectations. I thought its better to do it rather than leaving it as is.



1 Like

Hi Tajinder, Yes that sounds like the best way to do it, I think.


Hi Sam

Anything specific that I need to consider when renewing the contract? I mean any checks on the tenants, latest identity proof, visa expiry dates, valid passports or any other thing?



Hi, Not loads. Renewals are quite straightforward where all parties are happy with the terms of the tenancy. (That’s why we’re able to offer them for free!)

If the tenants passed the right to rent check on a visa or other documentation which was due to have expired before the renewal, then you should check again that they have the right to rent.


You should have all your deposit returned especially if your property is in order! And if you’re landlord hasn’t done it yet it’s out of order for him not to do so. I wish you guys good luck with your family and problems and hope they sort them self’s out! Good luck Sharon Grimshaw