Northern Ireland Tenancy Deposit Scheme: What Landlords Must Do

The Law That Changed Everything for NI Landlords

On 1 April 2013, tenancy deposit protection became mandatory in Northern Ireland under Articles 5A and 5B of the Private Tenancies (Northern Ireland) Order 2006. Every deposit taken for a private tenancy on or after that date must be safeguarded in a government-approved scheme.

Then the Private Tenancies Act (Northern Ireland) 2022 tightened the rules further. Since 1 April 2023, landlords have 28 calendar days to protect a deposit and 35 calendar days to serve prescribed information on the tenant. Fail either deadline and the breach is now a continuing offence — there is no six-month prosecution time limit. The council can come after you years later if the deposit stays unprotected.

Two Approved Schemes, Two Models

Northern Ireland has two government-approved deposit schemes:

• TDS Northern Ireland — operated by Tenancy Deposit Scheme Northern Ireland Limited, backed by RICS, Propertymark, and the Landlords Association of Northern Ireland
• mydeposits Northern Ireland — operated by HF Resolution Ltd (Hamilton Fraser)

A third provider, the Letting Protection Service Northern Ireland (LPSNI), is historical and no longer accepts deposits. If you see it referenced in older guides, ignore it.

Each scheme offers two models:

Custodial: You transfer the deposit money to the scheme. The scheme holds it in FCA-regulated bank accounts. Free to use — the scheme funds itself from interest on the deposits it holds.

Insurance-backed: You keep the deposit money yourself and pay the scheme a protection fee. If a dispute arises, you must transfer the disputed amount to the scheme for adjudication.

The 28-Day and 35-Day Split

Northern Ireland runs a split deadline system, unlike England's single 30-day window:

1. Day 1 — You receive the deposit. The receipt date is the first day of the statutory protection and prescribed-information periods. If paid in cash, you must issue a written receipt immediately
2. By Day 28 — The deposit must be protected in an approved scheme. For custodial, that means funds transferred and confirmed. For insured, that means the fee paid and the deposit registered
3. By Day 35 — You must serve the prescribed information on the tenant and any third-party payer (a guarantor or parent who paid the deposit)

Creating an online account on a scheme portal does not count as protection. The deposit is legally protected only when the scheme confirms it — either by receiving the funds (custodial) or issuing a Deposit Protection Certificate (insured).

What Counts as a Tenancy Deposit

A tenancy deposit is any money held as security for the tenant's performance of their obligations. That includes:

• A traditional damage deposit
• A pet deposit (it cannot push the total above one month's rent)
• A holding payment that converts into the deposit when the tenancy agreement is signed
• Money paid by a third party (guarantor, parent, charity) — which must still be protected and the third party listed as a "relevant person" in the prescribed information

What does not count: genuine advance rent applied purely to contractual rent obligations. But if money labelled "rent in advance" is actually held as security against damage or default, the authorities will reclassify it as a deposit.

The Deposit Cap

Since 1 April 2023, the maximum deposit a landlord can take is one month's rent. This is not the same as four weeks' rent. For weekly rent of £180, the monthly equivalent is (£180 ÷ 7) × 30 = £771.42 when rounded down to the nearest penny — not £720 (four weeks).

Deposits taken before 1 April 2023 that exceeded the cap were not automatically illegal. If the first tenancy ends and a new tenancy is granted on or after that date, any part of the old deposit carried into the new tenancy is a statutory retention, and any excess above the new tenancy's monthly rent is recoverable by the person who paid it.

Penalties for Getting It Wrong

District councils enforce deposit rules through Environmental Health departments. The penalties:

• Deposit above the one-month cap: council-set Fixed Penalty Notice up to £500; summary fine up to £2,500. The court may order the excess repaid to the person who paid it.
• Failure to protect or serve prescribed information: Fixed Penalty Notice equal to three times the deposit; summary fine up to £20,000
• Continuing offence: failures to protect a deposit or serve prescribed information continue until corrected

And an unprotected deposit blocks your ability to serve a valid Notice to Quit. You cannot lawfully end the tenancy until you either protect the deposit or return it in full.

Your Next Step

The deposit scheme rules look simple on paper — protect the deposit, serve the information. In practice, the split deadlines, the conversion formulas for non-monthly rent, and the mid-tenancy variation requirements trip up landlords constantly. Our Northern Ireland Tenancy Deposits guide walks through every step in order, with the forms, the conversion calculations, and the delivery logs you need to prove compliance if a council officer or a dispute adjudicator ever asks.

See more Northern Ireland guides →