Rent deposits

Copyright © 2025 LexisNexis

FORTHCOMING CHANGE: The Renters’ Rights Act 2025 received Royal Assent on 27 October 2025. For guidance regarding the Act’s impact on residential tenancies in England, see Practice Note: Renters' Rights Act 2025—key provisions.

This Overview summarises what a rent deposit is, including obligations to top up the deposit and provisions in respect of withdrawal (‘draw down’), how deposits are held, and what the usual provisions are in a rent deposit agreement in respect of repayment of the deposit. Further materials are available in our subtopic on Rent deposits.

A rent deposit is a sum of money deposited by a tenant when it takes a lease; it is deposited as security against non-payment of rent and other breaches of the lease. They are often given where a lease is either assigned or granted and the incoming tenant cannot supply the landlord with evidence of sufficient financial worth. They may be offered in place of or in addition to a guarantee to improve the tenant's covenant strength.

Rent deposit agreements usually cover 'any' default or breach by the tenant, and not just rent

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Existing user? Sign-in TAKE A FREE TRIAL
Powered by Lexis+®
Latest Property Disputes News

Property Disputes weekly highlights—20 November 2025

This week's edition of Property Disputes weekly highlights includes: permission to appeal being granted by the Supreme Court regarding the retrospective application of the Building Safety Act 2022, High Court decisions concerning a property-related professional negligence claim, a newcomer injunction to safeguard against unauthorised trespassers, and an award of damages for breach of an agreement for lease. It also includes the appointment of Lord Doherty as a Justice of the UK Supreme Court and the Ministry of Housing, Communities and Local Government’s announcement of the implementation timeline for the Renters' Rights Act 2025.

Lord Doherty appointed as a Justice of the UK Supreme Court

His Majesty King Charles III has approved the appointment of Lord Doherty as a Justice of the UK Supreme Court. The appointment was made on the advice of the Prime Minister, Sir Keir Starmer, and the Lord Chancellor, David Lammy, following the recommendation of an independent selection commission. Lord Doherty is expected to be sworn in as a Justice in early 2026.

MHCLG announces implementation timeline for Renters' Rights Act 2025

The Ministry of Housing, Communities and Local Government (MHCLG) has published the full implementation roadmap for the Renters’ Rights Act 2025, confirming the timetable for the most significant reform of residential tenants’ rights in a generation. The government has now set out a clear, phased plan for delivering the changes, beginning with the abolition of Section 21 ‘no-fault’ evictions on 1 May 2026. From this date, all new and existing tenancies in England’s private rented sector will convert to Assured Periodic Tenancies, giving renters open-ended tenures and ending the routine use of fixed-term contracts. Landlords will still be able to regain possession of their properties for defined and reasonable grounds, such as sale, moving in, rent arrears, or serious anti-social behaviour.

Property Disputes weekly highlights—13 November 2025

This week's edition of Property Disputes weekly highlights includes: Upper Tribunal decisions that a tenant appealing a costs order was not a basis for an unreasonable conduct cost sanction, and the costs consequence of an unreasonable refusal of a settlement offer in lease negotiations, a Court of Appeal decision concerning the test for reasonableness of residential service charges, and High Court decisions concerning the compatibility of leasehold reform measures with property rights under Article 1 of the First Protocol to the European Convention on Human Rights, and proprietary estoppel and trespass claims. It also includes the Ministry of Housing, Communities and Local Government’s guidance on the Renters' Rights Act 2025.

View Property Disputes by content type :  
News
Practice notes
Precedents
Q&As

Popular documents

What is the liability of an outgoing tenant under an 'old' lease following assignment? Is a landlord

What is the liability of an outgoing tenant under an 'old' lease following assignment? Is a landlord obliged to pursue the current tenant for any arrears before pursuing a former tenant or guarantor to a former tenant?Obligations of an assignor tenant under an old leaseThe general rule is that where

Quick guide to landlord’s remedies for breach of lease

Quick guide to landlord’s remedies for breach of leaseThis Practice Note provides a summary of the remedies available to a landlord when faced with a tenant’s breach of lease, including forfeiture, service of a statutory demand, court proceedings to recover rent or damages, or for an injunction,

Claims for use and occupation, mesne profits, double rent and double value

Claims for use and occupation, mesne profits, double rent and double valueThis Practice Note provides guidance on claims for ‘use and occupation’ or mesne profits, and how and when double rent or double value can be claimed.Claims for use and occupationA claim for use and occupation is possible

Priority between loss reliefs in loss making companies

Priority between loss reliefs in loss making companiesWhy does it matter?A company that is a member of a group and has incurred any of the types of losses available for surrender by way of group relief may, without any further rules, have more than one way in which to use the loss. There are a
What is the liability of an outgoing tenant under an 'old' lease following assignment? Is a landlord

What is the liability of an outgoing tenant under an 'old' lease following assignment? Is a landlord

What is the liability of an outgoing tenant under an 'old' lease following assignment? Is a landlord obliged to pursue the current tenant for any arrears before pursuing a former tenant or guarantor to a former tenant?Obligations of an assignor tenant under an old leaseThe general rule is that where

Quick guide to landlord’s remedies for breach of lease

Quick guide to landlord’s remedies for breach of lease

Quick guide to landlord’s remedies for breach of leaseThis Practice Note provides a summary of the remedies available to a landlord when faced with a tenant’s breach of lease, including forfeiture, service of a statutory demand, court proceedings to recover rent or damages, or for an injunction,

Claims for use and occupation, mesne profits, double rent and double value

Claims for use and occupation, mesne profits, double rent and double value

Claims for use and occupation, mesne profits, double rent and double valueThis Practice Note provides guidance on claims for ‘use and occupation’ or mesne profits, and how and when double rent or double value can be claimed.Claims for use and occupationA claim for use and occupation is possible

Priority between loss reliefs in loss making companies

Priority between loss reliefs in loss making companies

Priority between loss reliefs in loss making companiesWhy does it matter?A company that is a member of a group and has incurred any of the types of losses available for surrender by way of group relief may, without any further rules, have more than one way in which to use the loss. There are a