Wales vs England Deposit Rules: Key Differences for Landlords
The December 2022 Split
Before 1 December 2022, deposit protection across England and Wales was governed by a single regime under the Housing Act 2004. On that date, Section 45 of the Renting Homes (Wales) Act 2016 came into force, creating a distinct Welsh framework. Existing ASTs in Wales automatically converted into standard occupation contracts, and tenants became "contract-holders" by operation of law.
Landlords with properties on both sides of the border now operate under two separate statutory systems with different terminology, different caps, and different documentation requirements.
Side-by-Side Comparison
| Feature | England | Wales |
|---|---|---|
| Contract type | Assured Shorthold Tenancy | Standard Occupation Contract |
| Tenant terminology | Tenant | Contract-holder |
| Governing legislation | Housing Act 2004 (Chapter 4, Part 5) | Renting Homes (Wales) Act 2016, Section 45 |
| Security deposit cap | 5 weeks' rent (under £50k/year) or 6 weeks' | No statutory cap |
| Holding deposit cap | 1 week's rent (Tenant Fees Act 2019) | 1 week's rent (Renting Homes (Fees, Discrimination etc.) (Wales) Act 2019) |
| Protection deadline | 30 days from receipt | 30 days from receipt |
| Information served | Prescribed Information (S.I. 2007/797) | Required Information (S.I. 2022/250) |
| Penalty for non-compliance | 1x–3x deposit (court order) | 1x–3x deposit (court order) |
| Notice route | No Section 21 route (abolished 1 May 2026) | Section 173 notice can be blocked by deposit non-compliance |
| Approved schemes | DPS, MyDeposits, TDS | DPS, MyDeposits, TDS |
The Three Differences That Trip Landlords Up
1. No deposit cap in Wales
England caps security deposits at five weeks' rent for annual rents under £50,000 (six weeks above that threshold). Wales has no equivalent cap. The enabling power exists in the Renting Homes (Fees, Discrimination etc.) (Wales) Act 2019, but Welsh Ministers have never used it. A landlord charging five weeks' rent in Wales because "that's the rule" is following an English rule that does not apply.
2. Required information, not prescribed information
The 2022 Wales Regulations (S.I. 2022/250) replaced the 2007 Order's prescribed information for Welsh properties. The content is similar in structure but the legal instrument is different, the terminology is different, and using an English prescribed information template for a Welsh occupation contract is non-compliant. Schemes generate jurisdiction-specific packs — use the Welsh version.
3. Section 173, not Section 21
Section 21 was abolished in England on 1 May 2026 under the Renters' Rights Act 2025. In Wales, deposit non-compliance blocks Section 173 notices under Section 177 of the 2016 Act. To restore the right to serve a Section 173 notice, a landlord must return the deposit in full, or the remaining balance after agreed deductions.
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Transitional Contracts
Pre-existing ASTs in Wales that had a lawfully protected deposit before 1 December 2022 did not require fresh protection or a new deposit when they converted to standard occupation contracts. The original protection in the authorised scheme carried over. However, any deposit top-up, contract variation, or replacement contract executed after commencement falls entirely under the 2016 Act and its regulations.
The Wales deposit protection guide covers the Welsh framework in full, with cross-references to the English rules where the two systems diverge.
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