Joint Tenancy and Mid-Tenancy Deposit Protection Changes in England

Why Mid-Tenancy Changes Create Compliance Risk

Protecting a deposit at the start of a tenancy is one event with a clear 30-day deadline. But tenancies do not stay static. Flatmates leave and new ones arrive. A couple splits and one person takes over the tenancy alone. A landlord sells the property mid-tenancy. Each of these changes triggers fresh deposit compliance obligations — and most self-managing landlords do not realise it until something goes wrong.

Under the Housing Act 2004, the Prescribed Information must accurately reflect the current parties to the tenancy and the current deposit arrangements. When the parties or the arrangement change, the information already served may no longer be correct — and incorrect Prescribed Information is treated the same as unserved Prescribed Information for the purposes of a Section 214 penalty claim.

Joint Tenancies: When One Tenant Leaves

In a joint tenancy, all named tenants are jointly and severally liable for the rent and the deposit. The deposit was protected in all their names. When one joint tenant leaves and a replacement moves in, several things need to happen:

1. Update the scheme records. Log into the DPS, TDS, or mydeposits portal and update the tenant details — remove the departing tenant and add the incoming one. The scheme needs current records so that any future dispute or return is processed with the correct parties.

2. Serve updated Prescribed Information. The incoming tenant has never received the PI for this deposit. You must complete a fresh Prescribed Information form that reflects the new set of joint tenants and serve it on the incoming tenant within 30 days. The remaining tenants should also receive the updated version, and any relevant person (third-party payer) associated with the new tenant must be added and served.

3. Sort out the deposit between tenants. The outgoing tenant will want their share of the deposit back. This is technically a matter between the joint tenants — the deposit was paid jointly, and how they divide it is their arrangement. However, as a practical matter, the cleanest approach is for the incoming tenant to pay the outgoing tenant directly, and for the total protected deposit to remain unchanged. If the deposit amount changes (the new tenant pays more or less), the new total must be re-registered with the scheme.

The 30-day clock for serving updated PI on the incoming tenant starts from the date the tenancy variation takes effect — not the date you get around to updating the portal.

When a Sole Tenant Is Replaced

If the property has a single tenant and they leave, the tenancy ends. A new tenant means a new tenancy agreement, a new deposit, and a completely fresh protection cycle — register the deposit with the scheme, serve the Prescribed Information, all within 30 days.

This is simpler than the joint tenancy scenario because there is no ambiguity: one tenancy ends, another begins, and the compliance steps reset from zero.

Mid-Tenancy Variations That Affect the Deposit

Since the Renters' Rights Act 2025 abolished fixed-term ASTs from 1 May 2026, all tenancies in England are Assured Periodic Tenancies. Rent can only be increased via the statutory Section 13 notice process. If a rent increase pushes the annual rent above or below the £50,000 threshold, the deposit cap changes:

• Annual rent below £50,000: maximum deposit is five weeks' rent
• Annual rent at or above £50,000: maximum deposit is six weeks' rent

If the rent increases and you request a deposit top-up, the additional amount must not push the total deposit above the new cap. The top-up triggers its own 30-day protection cycle — register the additional funds with the scheme and serve updated Prescribed Information that reflects the new total deposit amount.

If the rent decreases and the existing deposit now exceeds the new cap, the excess becomes a prohibited payment under the Tenant Fees Act 2019. You must refund the difference.

Change of Landlord (Property Sale)

When a rented property is sold, the new landlord inherits the existing tenancy and the deposit obligations. The deposit must be transferred to the new landlord's scheme account — or the new landlord must register it fresh in their own name — and fresh Prescribed Information must be served on the tenant within 30 days of the change.

For custodial deposits, this means contacting the scheme to transfer the deposit to the new landlord's account. For insured deposits, the new landlord must ensure the policy is in their name or take out a new one.

The selling landlord should provide the buyer with the deposit protection certificate, the last Prescribed Information served, and proof of service. Without these, the new landlord is inheriting a potential Section 214 liability with no documentation to defend against it.

Switching Between Schemes

You can transfer a deposit from one scheme to another mid-tenancy — from DPS to TDS, for example. The process:

1. Request a return of the deposit from the old scheme (both landlord and tenant must agree)
2. Register the deposit with the new scheme
3. Serve fresh Prescribed Information reflecting the new scheme's details
4. Complete the entire cycle within 30 days of the old scheme releasing the funds

There is no requirement to use the same scheme for every tenancy or every property. But every switch creates a fresh 30-day compliance window, and missing it carries the same one-to-three-times-the-deposit penalty.

The Recurring Rule

Every change that alters who the tenants are, who the landlord is, which scheme holds the deposit, or how much the deposit is triggers the same obligation: update the scheme records and serve correct Prescribed Information within 30 days. The original PI from the start of the tenancy does not cover changes made afterwards.

For a structured walkthrough of every deposit lifecycle event — new tenancies, tenant swaps, rent changes, and scheme transfers — the Tenancy Deposit Protection guide includes checklists for each scenario with the forms, deadlines, and proof-of-service requirements in order.

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