Residential Tenancy Deposit Protection, Prescribed Information and Compliance Documents for Landlords and Letting Agents in Wales
Before a holding deposit is paid, the landlord or, if one has been instructed in relation to the proposed contract, the letting agent must give the prospective contract-holder the information specified by the Renting Homes (Fees etc.) (Holding Deposit) (Specified Information) (Wales) Regulations 2019 in writing and in the prescribed way. If that information has not been provided, Schedule 2 paragraph 11 prevents reliance on the contract-holder-withdrawal and reasonable-steps exceptions in paragraphs 8 to 10. If the deposit must consequently be repaid but is retained without another statutory basis, county-court recovery and applicable possession-notice restrictions may follow. The £1,000 fixed-penalty/prosecution route concerns the separate offences of requiring a prohibited payment; it is not an automatic penalty for every specified-information omission.
About These Documents
This section provides practical templates and compliance guidance for landlords and letting agents operating in Wales in relation to tenancy deposit protection and management.
These templates help landlords and letting agents in Wales to:
- Document any holding deposits legally, and provide information to prospective contract holders about the same
- Formally record and receipt any deposits paid
- Ensure deposits are correctly protected within required time limits
- Provide accurate Prescribed Information to contract-holders
- Reduce risk of legal disputes and enforcement action
- Manage deposit deductions fairly and lawfully; and
- Support dispute resolution through authorised deposit schemes
The documents are written in clear, plain English. Where legal terminology is required, explanatory guidance is included for clarity and usability.
All templates are provided in Word format and can be customised for individual property management needs.
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Frequently Asked Questions
How and when must I protect a deposit in Wales? +
Where the Welsh statutory deposit-scheme rules apply, comply with the scheme’s initial requirements and give the required information to the contract-holder and any person who paid the deposit on their behalf within 30 days beginning with payment. Failure can restrict no-fault notices and lead to a court award. Converted contracts have special rules: check the contract’s pre-1 December 2022 status and earlier compliance before assuming fresh protection or information is unnecessary. Use the Welsh deposit documents and retain evidence of compliance.
What is a holding deposit and what are the rules in Wales? +
A holding deposit reserves a property while you check an applicant. In Wales it cannot exceed one week's rent under the Renting Homes (Fees etc.) (Wales) Act 2019, and you must give the applicant the specified information before taking it. If the contract goes ahead the holding deposit is normally credited to the first rent or deposit, and there are set rules and time limits for repaying it if things do not proceed. The holding deposit templates apply these rules.
What happens if I do not protect the deposit or serve the prescribed information? +
A breach can prevent service of a section 173 notice. Check Schedule 9A paragraph 4: compliance with the relevant scheme/information requirements, repayment in full or with agreed deductions, or disposal of a qualifying Schedule 5 claim may remove the deposit-related restriction. That does not erase an earlier breach or waive other notice conditions. If the statutory grounds are established, the county court must award between one and three times the deposit. For an ongoing contract it must also order repayment or payment into an available custodial scheme; after the contract ends, repayment is discretionary. Converted contracts and pre-1 December 2022 court applications have special rules.
Can I make deductions from the deposit at the end of the contract? +
A landlord may propose a deduction only where the occupation contract permits it and the evidence supports the loss, for example rent arrears or damage beyond fair wear and tear. Try to agree the allocation first. Each authorised scheme offers a free dispute-resolution service, but it is not compulsory: the landlord and contract-holder must both agree to use it and to be bound by the adjudicator's allocation. Otherwise the dispute may be taken to court. Follow the scheme's procedure and time limits and keep the inventory, photographs, correspondence and evidence of actual loss.
