What the Renters' Rights Act means for deposit protection

The Renters' Rights Act has been one of the most talked-about pieces of legislation in the private rented sector for years, and now it's here. From 1st May 2026, all residential tenancies automatically became Assured Periodic Tenancies, rolling indefinitely with no fixed end date, and Section 21 is now gone. 

Most of the conversation has focused on possession rights and what happens if you need a tenant to leave.  While the rules around deposits haven’t changed, the Renters’ Rights Act could still shape how things play out, especially if there’s a dispute. 

Your deposit protection is now directly linked to your possession rights

Under the old system, deposit protection was tied to Section 21, but Section 8 had more flexibility. That’s now changed. A landlord now cannot obtain an order for possession under Section 8 unless the deposit has been protected in an authorised tenancy deposit scheme and the prescribed information has been served before the notice is issued, with the only exception being grounds related to anti-social behaviour. 

In plain terms: if your deposit isn't properly protected, you can't evict. An unprotected deposit must be remedied before any valid Section 8 notice can be served, and that remedy does not retroactively validate a notice served while the breach existed. This matters even if you've never had a dispute and have no intention of evicting anyone. It's a compliance baseline that now underpins your entire relationship with the tenancy.

Rolling tenancies mean the evidence bar gets higher over time

With tenancies now open-ended, the old rhythm of a fixed-term ending, a fresh check-out, and a clean slate no longer applies. Tenancy management has shifted from a fixed-term cycle to an ongoing process requiring continuous oversight. 

Why does this matter for deposits?

The longer a tenancy runs, the harder it becomes to draw a clear line between fair wear and tear and genuine damage. A mark on the wall that appeared after year one looks very different from one that appeared after year four, but if your only photographic evidence is a check-in report from the start, you’re leaving a significant gap in your evidence trail. The evidence that protects you in a deposit dispute is the same evidence that supports you throughout a tenancy. Dated, detailed, regular, and not just at the beginning and end of the tenancy. 

Tenants are more likely to challenge deductions

The Act has strengthened tenant rights across the board, and awareness of deposit rules and dispute processes is growing alongside that. Tenants who feel a deduction is unfair have more confidence and more information to push back. 

That doesn't mean landlords are at a disadvantage. It means vague deductions with limited evidence are less likely to be agreed. A well-documented tenancy, with clear expectations set from the start and a strong photographic record throughout, is your best protection. 

What to do now

If you haven't already, it's worth taking a look at your current tenancies and asking a few simple questions: 

• Is every deposit properly protected, with prescribed information served? 

• When did you last take dated photos of the property's condition? 

• Are your tenancy agreements clear about maintenance expectations - cleaning, garden upkeep, and reporting of damage? 

• Have you carried out a mid-tenancy inspection recently? 

None of this is complicated, but it does need to be consistent. Landlords who treat compliance as an ongoing process rather than a one-off task will be in a much stronger position -  both in any deposit dispute and, if it ever comes to it, in pursuing possession through Section 8. 

The rules have changed. The good news is that the basics of good practice haven't. 

Further support from TDS

For guidance, templates and tools to help you manage deposits with confidence, visit the TDS Help Centre. 

Click below to find out more information from TDS.