In our recent articles, we have looked at the phased implementation of the Renters’ Rights Act and the structural changes it will bring to tenancy agreements and possession procedures.
Another area now coming into sharper focus is deposit protection and, more specifically, how it will directly affect a landlord’s ability to rely on possession grounds once Section 21 is abolished.
Deposit protection has been a legal requirement for many years. However, under the new fully grounds-based possession system, correct compliance will move from being important to being absolutely critical.
A Different Landscape Without Section 21
The Government has confirmed that Section 21 “no-fault” evictions will be removed as part of the reforms. Once implemented, landlords will only be able to regain possession using statutory grounds.
The Government’s implementation roadmap can be viewed here:
Renters’ Rights Act 2025: Implementation Roadmap (gov.uk)
Under this system, the court process will place far greater emphasis on procedural accuracy. That includes deposit protection.
If a landlord cannot demonstrate that the tenant’s deposit was correctly protected and the prescribed information properly served, this could complicate reliance on certain possession grounds.
In practical terms, this means compliance errors could delay or undermine an otherwise valid possession claim.
What the Law Already Requires
The legal obligation itself is not new. Under the Housing Act 2004, landlords must protect a tenant’s deposit in a Government-approved scheme within 30 days of receiving it and provide the tenant with prescribed information within the same timeframe.
Official guidance on tenancy deposit protection is available here:
Tenancy deposit protection (gov.uk)
There are three authorised schemes in England:
While many landlords are familiar with these requirements, the removal of Section 21 changes the risk profile. Previously, deposit non-compliance could sometimes be remedied before serving notice. Under a purely grounds-based system, procedural compliance is expected to take on greater importance.
Why Evidence Now Matters More?
Under the forthcoming framework, it will not be enough simply to have protected the deposit. Landlords should be able to evidence that protection was completed within the 30-day window and that prescribed information was properly served.
This generally means maintaining clear records of protection and service so there is a documented audit trail if ever required.
For landlords with long-standing tenancies, renewals, or historical changes in management, now is a sensible time to review files. Administrative oversights that once felt minor may carry greater consequences in the future.
This shift aligns with the wider direction of travel under the Act: clearer documentation, more visible compliance, and structured processes that can withstand scrutiny.
The Wider Compliance Picture
Deposit protection sits within a broader framework of landlord responsibilities, including safety certification, licensing where applicable, Right to Rent checks and energy efficiency requirements.
The Government provides an overview of landlord responsibilities here:
Renting out a property (gov.uk)
For landlords operating in Liverpool, where licensing schemes and compliance checks are already part of the landscape, the direction of travel will feel familiar. The difference is that possession claims are likely to place greater emphasis on overall compliance.
What This Means In Practice?
The key message is not that deposit protection is a new requirement, but that its significance is increasing.
As the private rented sector moves toward a fully grounds-based possession system, every element of compliance forms part of the legal foundation for recovering a property. Clear records, correct timelines and documented procedures are increasingly important safeguards.
Landlords who review their processes early and ensure documentation is complete will be better positioned to operate confidently under the new framework.
Our Approach at Address Properties?
At Address Properties, we are reviewing deposit procedures alongside the wider Renters’ Rights Act reforms to ensure our processes align with the evolving regulatory framework.
For landlords who self-manage or have historic tenancies in place, this is an appropriate time to carry out a compliance review. Identifying and resolving gaps early is always preferable to addressing them during a possession process.
If you would like to discuss how the Renters’ Rights Act may affect your portfolio, or if you would like us to review your current tenancy documentation and deposit arrangements, our team would be happy to assist.
You can learn more about our landlord services here:
The information above is intended as general guidance and does not constitute legal advice. Landlords should seek independent legal advice in relation to specific circumstances.