Renewing a tenancy with reduced deposit

Despite researching this I cannot find any simple way of renewing an existing tenancy without requesting a new deposit because the existing deposit amount (held by the appalling / incompetent DPS) is higher than the new regulations of maximum 5 weeks rent.

Not sure how the tenants will appreciate having to find a new deposit before the old is returned to them. Really could use some advice.

Hi Richard, is this an OpenRent Rent Now tenancy? If so, you can renew the tenancy for free by following the steps under part three of this guide:

Your deposit will be under your control. You can return a partial amount to the tenant at any time and initiate that process via the DPS site.


a normal ast automatically defaults into a periodic tenancy so you dont need to do anything unless there are things you haven’t mentioned in your post

The issue is the current deposit does not conform to the new deposit restrictions.

You only need to observe the new cap rules for a new tenancy, or when renewing a tenancy (with a new contract.)

You do not need to do anything If the tenancy is becoming periodic (going monthly, after the first 6 months on a typical AST).

yes, i got that, if you are still unsure go and see a solicitor

The only options I can see at the DPS are either Return the Full Deposit or Make A Claim - neither of which are right. Do I have to create an entirely new tenancy on there and if so how is part of the deposit transferred over?
All this is ridiculous. A situation created by a change in law that is unfair to landlords.

Hi Richard,

I decided to call up DPS and get an answer for you!

Their solution is very low-tech but here is a step-by-step guide on how to partially refund a tenancy deposit held by DPS.

  1. Go to this page on the DPS site.
  2. If you’re on an insured scheme, download the insured scheme Deposit Cap Calculator. If you’re on a custodial scheme, download the custodial scheme Deposit Cap Calculator. You do this by pressing the relevant blue button.
  3. The calculator is just a spreadsheet. Open the spreadsheet once it has downloaded
  4. Fill out the form. It will ask you for: landlord ID, registered email address, deposit ID, property address current deposit value, current rental payment amount, rental period and amount you want to repay.
  5. Save the document
  6. Attach the document to an email and sent the email to

If you have a custodial scheme then DPS will make the repayment on your behalf.

If you have an insured scheme then you will need to then return the paid amount manually. DPS will update their system assuming that you make the payment as soon as they receive and process the email you send them.


Hi Richard26,

ANy resolution, i am seeing the same thing, it wont let me reduce and only has a full refund button? Anyone tried Sam’s suggestion?


It seems you want to do two things:

  1. return the over payment, if so do as Sam said or just work out wha it is and write to the deposit scheme you are with requesting that amount be returned to the tenant, assuming you want a new fixed term tenancy agreement. If you are happy for the old agreement to continue, assuming it started before (July? 2019), on a monthly basis then there is no need to make a partial refund.
  2. create a new tenancy agreement for six months or more because you don’t want to be on a monthly basis. If that is the case, a full refund is due and a new deposit is to be made. This may not be what you want as it seems ridiculous that you have the same tenant for a new tenancy agreement, but that is it, otherwise write to the deposit scheme and see if they are happy to hold the deposit again the new tenancy agreement. If you don’t write, then do 1) and just issue the new tenancy agreement, as the deposit will be as per current law and is held by the deposit scheme. I see no reason why that should not work: it meets your needs for case 2), so just do it. You will probably have to re-issue the ‘prescribed information’. If in doubt, tell the deposit scheme what you intend to do and ask for their reaction!

If the tenancy is renewed, re-protect the deposit on renewal. If in doubt contact 0300 037 1000,, is my instruction to me. You may be with a different different deposit scheme.