The schemes' pricing is simpler than the internet suggests: DPS custodial is free to both parties; TDS and mydeposits charge landlords membership/protection fees; tenants never pay scheme fees at all.
The three schemes at a glance
DPS: custodial, government-run, free both sides, most common. TDS: insurance-backed, landlord keeps funds, arbitration arm well known. mydesposits: insurance-backed, agent-friendly. All three satisfy the legal duty - the tenant's rights (30-day protection, prescribed information, 10-day return, 1-3x penalty) are identical across schemes. Which scheme a landlord uses doesn't change YOUR protections.,
The 'protection fee' scam pattern
Repeat-offender pattern: letting 'services' or fake schemes charge tenants 'registration' or 'protection' fees, or landlords charging admin fees disguised as scheme costs (banned for ASTs since 2019's Tenant Fees Act). The genuine schemes never charge tenants. If asked: check the scheme list on GOV.UK, keep the receipt, and report - it's both a consumer issue and often a Tenants Fees Act breach.,
Questions this page answers
How much does a tenancy deposit scheme cost?
DPS (custodial): free - the scheme holds the money, earns interest instead of fees. TDS and mydespoits (insurance-backed): landlord-paid protection fees (tens of pounds per deposit, membership tiers vary). TENANTS pay nothing to any scheme - fees charged to tenants for 'deposit protection' are either the landlord's cost passed unlawfully or a scam.
How much does a deposit protection scheme cost?
Per above - custodial free, insurance schemes cost the landlord a modest per-protection fee. The schemes publish fee schedules; verify current rates on their own sites before anyone quotes you.
How long does a tenancy deposit scheme take?
Protection: instant (online portal, minutes). Return: 10-day statutory window after tenancy end; disputes via adjudication take weeks-months. Protection itself has no waiting period - if a landlord says 'protection takes time', that's a delay tactic; online portals protect same-day.
What is the tenancy deposit scheme and how does it work?
Government-backed framework (Housing Act 2004 ss.213-215): landlords must placeAST deposits in an authorised scheme - custodial (DPS holds the money) or insurance-backed (landlord keeps the money, scheme insures compliance, backed by repayment obligations). Protection within 30 days + prescribed information to the tenant; 1-3x penalty for breach.
How much is a tenancy deposit scheme?
Same as the cost question: custodial free, insurance landlord-paid. What a scheme is NOT: a tenant cost, a 'registration fee', or negotiable. If anyone asks YOU (tenant) for protection money - red flag, report it.