DPS Deposit Protection: How to Register a Deposit Step by Step

What the DPS Is and Why It Matters

The Deposit Protection Service — DPS — is one of three government-authorised deposit schemes in England, operated by Computershare Investor Services PLC. Under Section 212 of the Housing Act 2004, every landlord who takes a security deposit for an assured tenancy must protect it in one of these three schemes within 30 calendar days of receiving the money. The DPS is the most widely used option among self-managing landlords, largely because its custodial service costs nothing.

Since 1 May 2026, the Renters' Rights Act 2025 has converted all Assured Shorthold Tenancies into Assured Periodic Tenancies and abolished Section 21 notices. For most Section 8 possession grounds, a court cannot grant an order unless the deposit is in an authorised scheme, the scheme's initial requirements have been met (even if late), and Prescribed Information has been served; the deposit is returned in full or with agreed deductions; or a Section 214 challenge has been decided, settled, or withdrawn. This restriction does not apply to anti-social behaviour grounds 7A and 14.

Custodial vs Insured: Which DPS Option to Choose

The DPS runs two separate models under one portal:

Custodial (free) — You transfer the deposit money to the DPS. They hold it in a ring-fenced account until the tenancy ends. There is no fee. The DPS earns interest on pooled deposits, which funds the service.

Insured (paid) — You keep the deposit in your own bank account and pay the DPS a per-deposit insurance premium. Current pricing is approximately £18.75 for deposits up to £500 and £27.75 for deposits above £500. No annual membership is required.

For a self-managing landlord with one or two properties, the custodial route removes any cash-handling risk. The money sits with the scheme, you cannot accidentally spend it, and you pay nothing. The insured route suits portfolio landlords who want to retain cash flow and are comfortable ringfencing funds separately.

The Registration Process Step by Step

1. Create or log into your DPS account. You need an email address, your name and contact details, and your landlord status (individual, company, or agent). If you already have a DPS account from a previous tenancy, use the same login.

2. Add the property. Enter the full address of the rented property, the tenancy start date, and whether it is a single let, HMO, or room-only let.

3. Enter tenant details. Full name, contact address, email, and phone number for every named tenant. If a parent, employer, or local authority paid the deposit, you must also enter their details as a "relevant person."

4. Record the deposit amount. The exact sum received, to the penny. Check that it falls within the Tenant Fees Act cap — five weeks' rent for annual rent under £50,000, six weeks' rent for £50,000 and above. The portal does not verify the cap for you.

5. Transfer funds (custodial) or pay the premium (insured). For custodial, initiate a bank transfer to the DPS holding account using the reference the portal generates. For insured, pay the insurance fee online.

6. Wait for confirmation. Once the DPS confirms receipt (custodial) or premium clearance (insured), your deposit is officially protected. The portal generates a Deposit Protection Certificate.

7. Download the Prescribed Information form and the scheme's explanatory leaflet. The certificate alone does not satisfy your legal obligations — you must also complete and serve the statutory Prescribed Information within the same 30-day window.

Prescribed Information: The Step Most Landlords Miss

Registering the deposit on the DPS portal is only half the job. Section 213(5) of the Housing Act 2004 requires you to serve the statutory Prescribed Information on every tenant and any relevant person within 30 calendar days.

The DPS generates a template, but you must fill in every required field: the scheme's contact details, the deposit amount, the property address, full contact details for all landlords and agents, the specific contractual grounds for deduction from your tenancy agreement, and the scheme's official leaflet attached. Then you serve it — hand delivery with a signed receipt, or recorded post — and keep proof.

Courts routinely award one to three times the deposit against landlords who protected the money on time but never served the Prescribed Information. The protection certificate is not a substitute for the PI form.

Common DPS Registration Mistakes

• Starting the 30-day clock from the tenancy start date rather than the date you received the money
• Entering the wrong deposit amount (even a penny discrepancy creates a mismatch)
• Skipping the third-party payer — if a guarantor parent paid the deposit, they must appear on the registration and receive the Prescribed Information
• Assuming the DPS protection certificate is the Prescribed Information
• Failing to keep proof of service (a signed tenant acknowledgement or proof of postage)

What Happens at the End of the Tenancy

When the tenancy ends and both parties agree on any deductions, the DPS releases the funds within 10 calendar days. If there is a dispute, the DPS offers a free Alternative Dispute Resolution service. Both landlord and tenant must consent to ADR — if either party refuses, the dispute goes to County Court.

Under ADR, you submit evidence (inventories, photographs, invoices) within the scheme's window, typically 14 to 20 days. An adjudicator makes a binding decision, usually within 28 to 42 days.

The strength of your claim depends almost entirely on your documentation. A detailed, dated check-in inventory compared against a check-out report is the single most important piece of evidence in any deduction dispute.

For the full deposit protection workflow — from the day money arrives to the day it goes back — the Tenancy Deposit Protection guide walks through every step, deadline, and form in order, with worksheets for the deposit cap calculation, Prescribed Information service, and inventory reconciliation.

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