First-Time Landlord Wales Deposit Protection: What Changed in 2022

The 2022 Overhaul

On 1 December 2022, the Renting Homes (Wales) Act 2016 came into force and replaced the entire framework for residential lettings in Wales. Assured shorthold tenancies became standard occupation contracts. Tenants became contract-holders. And deposit protection moved from the Housing Act 2004 to a Welsh-specific regime under Section 45 of the 2016 Act, with its own set of regulations.

For anyone becoming a landlord in Wales after that date, these are the only rules that apply. The English system — which still uses the Housing Act 2004 for deposits — does not govern Welsh properties.

The Five Things Every New Welsh Landlord Must Know

1. There is no deposit cap

England caps security deposits at five weeks' rent (or six weeks for properties with annual rent above £50,000). Wales has no equivalent cap. The enabling power exists in the Renting Homes (Fees, Discrimination etc.) (Wales) Act 2019, but it has never been activated. A Welsh landlord can agree to any deposit amount — though market norms and tenant expectations usually keep it around four to six weeks' rent.

Holding deposits, however, are capped at one week's rent.

2. You have 30 days — and both duties must be completed

From the day the deposit lands in your account (or your agent's account), you have 30 calendar days to register it with an authorised scheme (DPS, MyDeposits, or TDS) and serve the required information on the contract-holder and any third party who paid the deposit on their behalf. These are two separate obligations. Completing one without the other is non-compliant.

3. Required information is not prescribed information

If you search online for deposit protection templates, you will find English "prescribed information" forms based on the 2007 Order. These do not apply in Wales. Welsh landlords must use required information packs that comply with the Renting Homes (Deposit Schemes) (Required Information) (Wales) Regulations 2022 (S.I. 2022/250). The authorised schemes generate Wales-specific versions — use those.

4. Non-compliance blocks your Section 173 notice

If you ever need to end the occupation contract using a no-fault Section 173 notice, you cannot do so while the deposit is non-compliant. Section 177 of the 2016 Act blocks the notice if the deposit is unprotected, if the initial requirements were not met within 30 days, or if the required information was not served. Late compliance does not cure the breach.

5. Penalties are mandatory

A contract-holder who brings a County Court claim for deposit non-compliance will receive a compensation order if the court finds a breach. The court must award between one and three times the deposit amount. Courts typically order 1x for a first-time landlord's genuine administrative mistake, but the award is never zero.

Common Mistakes New Landlords Make

Protecting the deposit but not serving the required information — scheme registration alone is not enough. The information pack must be served on the contract-holder and any third party who paid the deposit on their behalf.

Using an English template — the terminology ("prescribed information", "assured shorthold tenancy", "section 21") is wrong for Wales. The legal instrument is different.

Not recording the receipt date — without knowing exactly when the deposit was received, you cannot prove you met the 30-day deadline.

Relying on Rent Smart Wales registration for deposit compliance — Rent Smart Wales handles landlord licensing under the Housing (Wales) Act 2014. It has nothing to do with deposit protection under the 2016 Act. Being registered with Rent Smart Wales does not mean your deposit is protected.

Not keeping proof of delivery — if you serve the required information by ordinary post with no tracking, you have no evidence of delivery. If the contract-holder later disputes receipt, the burden of proof falls on you.

The Wales deposit protection guide covers the full compliance process with a 30-day countdown checklist and templates for new landlords.

See more Wales guides →