Deposit rules and what blocks a possession claim

Plain-English guide for landlords and tenants in England on deposit limits and the things that can stop a section 8 possession claim. Sources cited inline; full list at the end.

Deposit limits from 1 May 2026

• A holding deposit is capped at one week's rent [S3].
• A tenancy deposit is capped at 5 weeks' rent — or 6 weeks' rent if the annual rent is £50,000 or more [S3].
• The tenancy deposit must be protected in a government-approved scheme and the prescribed information must be given to the tenant [S3].

Rent in advance

• A landlord cannot ask for, accept or encourage rent paid in advance before the tenancy agreement is signed [S1, S3].
• After signing, during the pre-tenancy period, the maximum is one month's rent (or 28 days' worth if rent is not paid monthly) [S3].
• Exceptions apply for council homelessness placements and social or supported housing. Councils can order repayment where the rules are broken [S3].

The deposit blocker: the big possession trap

• On most possession grounds, the court cannot order possession unless the deposit was protected in an approved scheme, the scheme's requirements were complied with, and the prescribed information was given — or the deposit was returned, or the landlord shows a reasonable excuse the court accepts [S4, S5].
• This blocker does not apply to Grounds 7A (severe antisocial or criminal behaviour) and 14 (antisocial behaviour) [S4, S5].
• Practical point for landlords: check the deposit is protected and the prescribed information was served before serving a section 8 notice. A paperwork failure can defeat an otherwise strong claim [S4, S5].

Other things that can block or delay a claim

• No valid ground. Section 21 is gone; a landlord must prove a section 8 ground [S5].
• Notice not long enough or not in Form 3A wording. The section 8 notice must be in Form 3A wording and state the ground and a date before which proceedings will not begin; the date must respect the minimum notice period for the ground (4 months, 2 months, 4 weeks or 2 weeks, depending on the ground) [S5, S6].
• Protected periods. For Grounds 1 and 1A (landlord moving in or selling), a notice served in the first 12 months of the tenancy cannot expire before the 12-month protected period ends [S4, S5].
• Missing prior notice. Some grounds need the tenant to have been warned at the start of the tenancy (e.g. Grounds 2ZA, 2ZB, 4A, 5C) [S5].
• Proceedings out of time. Proceedings must begin within 12 months of the notice being served [S6].
• Arrears paid down. For the mandatory Ground 8 (serious arrears), if the arrears fall below the threshold (3 months' rent for monthly tenancies) before the hearing, the ground fails [S4, S7].

The possession process itself

• Serve a section 8 notice (Form 3A wording) → make a claim (Possession Claim Online for rent-arrears-only cases, or a paper claim using forms N5 and N119) → court order → bailiff eviction with at least 14 days' notice [S5].
• Court fee: £415 (raised from £404). Transfer to the High Court: £123 plus £80 [S5].
• On discretionary grounds, an eviction warrant can be suspended [S5].

Sources

• [S1] Renters' Rights Act overview for tenants — https://www.gov.uk/guidance/renters-rights-act-overview-for-tenants
• [S3] Rent in advance and deposits — https://www.gov.uk/assured-tenancy-agreements-a-guide-for-landlords/rent-in-advance-and-deposits
• [S4] Grounds for possession: guidance for tenants — https://www.gov.uk/government/publications/grounds-for-possession-tenant-guidance/grounds-for-possession-guidance-for-tenants
• [S5] Repossessing your privately rented property after 1 May 2026 — https://www.gov.uk/guidance/repossessing-your-privately-rented-property-after-1-may-2026
• [S6] Housing Act 1988 s.8 (as at 1 May 2026) — https://www.legislation.gov.uk/ukpga/1988/50/section/8
• [S7] Housing Act 1988 Sch 2 (as at 1 May 2026) — https://www.legislation.gov.uk/ukpga/1988/50/schedule/2