Tenancy Deposit Cap on High-Rent Properties: 5 vs 6 Weeks Explained 2026/27

Why there are two different caps

The Tenant Fees Act 2019 bans most fees landlords and agents could previously charge tenants, but it also set a hard cap on the one payment that is still allowed upfront beyond rent itself: the tenancy deposit. Rather than a single fixed cap, Parliament set two tiers based on how expensive the tenancy is:

• Five weeks' rent — the standard cap, applying where the total annual rent is below £50,000.
• Six weeks' rent — the higher cap, applying where the total annual rent is £50,000 or more (equivalent to roughly £4,167 or more per month).

The higher cap exists because at very high rent levels, five weeks' deposit may not give a landlord enough security against unpaid rent or damage, so the law allows an extra week for these properties.

Working out which cap applies

The test is based on the annual rent figure for the tenancy, calculated as the total rent payable over 12 months (or the term of the tenancy if shorter, annualised).

Worked example 1 — standard cap: A flat lets for £1,500 per month. Annual rent = £1,500 × 12 = £18,000, which is below £50,000, so the five-week cap applies. Weekly rent = £18,000 ÷ 52 = £346.15. Maximum deposit = £346.15 × 5 = £1,730.77.

Worked example 2 — higher cap: A central London house lets for £4,500 per month. Annual rent = £4,500 × 12 = £54,000, which is £50,000 or more, so the six-week cap applies. Weekly rent = £54,000 ÷ 52 = £1,038.46. Maximum deposit = £1,038.46 × 6 = £6,230.77.

Note the jump: at exactly the £50,000 threshold, the deposit cap moves from five weeks to six weeks of a higher weekly rent figure, so the maximum permitted deposit rises by more than one week's rent in percentage terms once a tenancy crosses the line.

Holding deposits are separate

Do not confuse the tenancy deposit cap with the holding deposit cap. A holding deposit — the payment taken to reserve a property before referencing is complete — is capped separately at one week's rent, regardless of whether the tenancy will ultimately fall under the five-week or six-week deposit cap. If the tenancy goes ahead, the holding deposit is normally credited against the first month's rent or the full deposit; if it does not go ahead for a permitted reason, it can be retained by the landlord or agent.

What counts as a prohibited payment

If a landlord or agent takes a deposit above the applicable cap, the excess is a prohibited payment under the Tenant Fees Act 2019. Consequences include:

• The tenant can demand the excess back, and it must be refunded.
• Until the excess is repaid, the landlord may be unable to serve a valid Section 21 "no fault" notice to regain possession.
• Local authorities (usually via Trading Standards) can issue a financial penalty of up to £5,000 for a first breach, rising to a criminal offence or unlimited fine for repeat breaches within five years.

Protecting the deposit regardless of size

Whichever cap applies, the deposit must still be protected in one of the government-approved tenancy deposit protection schemes within 30 days of receipt, and the tenant must be given the prescribed information about where it is held and how disputes are resolved. Failure to protect a deposit — even one that is correctly sized under the cap — exposes the landlord to compensation claims of one to three times the deposit amount, payable to the tenant.

Practical checklist for landlords

• Calculate annual rent carefully before quoting a deposit figure, especially for high-value lets close to the £50,000 threshold.
• Never take a "top up" deposit later in the tenancy that would push the total above the cap in place when the tenancy started.
• Keep documentary evidence of the rent figure used to justify the cap applied, in case of a dispute.
• Always protect the deposit and issue prescribed information within 30 days, regardless of the cap tier.