DPS (Deposit Protection Service)
Summary
Three government-approved schemes can lawfully hold or insure a tenancy deposit in England and Wales. The Deposit Protection Service — operated by Computershare Investor Services plc — is the only scheme that operates exclusively on a custodial basis: it physically holds the deposit money in a ring-fenced account for the duration of the tenancy. The DPS is free to landlords and tenants. When the tenancy ends, both parties must agree the repayment amount through the DPS portal; if they disagree, the DPS provides an adjudication service at no cost. Roughly a third of protected deposits in England and Wales sit with the DPS.
How the DPS custodial scheme works
When a landlord registers a deposit with the DPS, the deposit funds are transferred to the DPS and held in a client account separate from the landlord's money. The landlord cannot access or spend the money during the tenancy. At the end of the tenancy, both landlord and tenant log into the DPS portal and either agree a repayment split or raise a dispute. If a dispute is raised, the DPS appoints an independent adjudicator to decide the allocation based on evidence submitted by both parties. The decision is final and binding under the scheme rules.
DPS vs insured schemes
Unlike insured schemes (TDS Insured, MyDeposits Insured), the DPS custodial scheme means the landlord never holds the money — it sits with the scheme throughout. This gives tenants additional protection: even if the landlord becomes insolvent or disappears, the deposit is safe in the DPS account. With insured schemes, the landlord holds the money and buys insurance to guarantee it; if the landlord becomes insolvent, the tenant must claim against the insurer rather than simply requesting the funds from the scheme.
Checking whether your deposit is with the DPS
You can check DPS registration at depositprotection.com using your deposit protection certificate number, or by searching with your tenancy details (landlord name, property postcode, tenancy start date). If your landlord told you the deposit is protected but you cannot find it on the DPS, TDS, or MyDeposits websites, it may be unprotected — a breach of Housing Act 2004 s.213.
Raising a DPS deposit dispute
- ✓Log in to depositprotection.com and navigate to the repayment request for your tenancy.
- ✓If the landlord proposes deductions you dispute, reject the landlord's repayment request.
- ✓Submit your evidence pack: tenancy agreement, check-in and check-out reports, photos, communications.
- ✓DPS appoints an adjudicator — the process is entirely online and takes approximately 28 days.
- ✓The adjudicator's decision allocates the deposit between the parties; DPS pays out accordingly.
What happens if the landlord does not respond
If the landlord fails to respond to a repayment request within the DPS deadline (typically 30 days), the DPS will return the full deposit to the tenant. Landlords who repeatedly fail to engage risk being removed from the scheme. If the deposit was registered late or Prescribed Information was not served, the tenant can bring a s.214 county court claim regardless of whether the DPS adjudication has been used.
Sources
- Housing Act 2004, s.212–s.215
- Housing (Tenancy Deposits) (Prescribed Information) Order 2007 (SI 2007/797)
Frequently Asked Questions
- Is the DPS free to use?
- The DPS custodial scheme is free for both landlords and tenants — the DPS earns revenue from interest on the pooled deposit funds. The DPS also operates a paid insured scheme (DPS Insured) where landlords hold the money and pay a membership fee. The adjudication service is free in both cases.
- Can I use DPS adjudication even if my landlord is unresponsive?
- Yes. If the landlord does not engage with the repayment process, the DPS will contact them by the scheme deadline. If still no response, the DPS returns the full deposit to the tenant. You do not need the landlord's cooperation to get your money back through the scheme.
- What if I disagree with the DPS adjudicator's decision?
- The DPS adjudication decision is binding under the scheme rules and cannot be appealed within the scheme. However, either party can bring a separate county court claim — the adjudication does not prevent litigation. In practice, courts give weight to adjudication findings, so a strong evidence pack at adjudication stage is important.
Related
- housing-act-2004-s-213
- Custodial Deposit Scheme
- Insured Deposit Scheme
- Adjudication (Deposit Dispute)
- deposit-not-protected-situation
- deposit-protection-deadline
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