What is Deposit cap?
Last verified 31 October 2026
The deposit cap is the legal limit on how much a landlord can ask for as a tenancy deposit in England. GOV.UK says landlords can ask for up to 5 weeks' rent if the yearly rent is under £50,000, or up to 6 weeks' rent if it is £50,000 or more.
Why it matters to landlords
The cap includes the whole security deposit, so work it out from the annual rent in the tenancy agreement. A holding deposit to reserve a property can be up to one week's rent, and once the person becomes a tenant, the holding deposit counts as part of the deposit and must be protected. Rent in advance is a separate limit: GOV.UK says that after signing, a tenant can be asked for a maximum of 1 month's rent in advance.
Deposits must be protected in an approved scheme within 30 days of receipt, including deposits paid by a third party such as a parent. Stay within the cap when you set the deposit. Work out the weeks properly: the weekly rent is the annual rent divided by 52, not the monthly rent divided by four. Wales and Scotland have their own deposit rules.
Example
Elaine lets a flat in Lincoln at £850 a month. Annual rent is £10,200, so the weekly rent is £10,200 divided by 52, which is £196.15. Five weeks is £980.77. She asks for £980 as the deposit and protects it within 30 days.