Private Rented Housing: Tenancy Deposit Schemes

(asked on 24th June 2025) - View Source

Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, whether her Department has made an assessment of the potential impact of using (a) no-deposit and (b) deposit alternative schemes in the private rented sector on tenants; and what plans she has to ensure tenants are protected from costs associated with those schemes.


Answered by
Matthew Pennycook Portrait
Matthew Pennycook
Minister of State (Housing, Communities and Local Government)
This question was answered on 2nd July 2025

The government is aware of the issues raised in 2023 by the Competition and Markets Authority in relation to deposit products.

While my Department has not conducted a detailed assessment of ‘zero-deposit’ or ‘deposit alternative’ products, we continue to monitor their impact on private rented sector tenants.

The Ministry of Housing, Communities and Local Government is responsible for the Tenancy Deposit Protection system, managing the six contracts which deliver the government-arranged schemes that protect tenants' deposits.

As part of the upcoming re-procurement of these contracts we are reviewing the current tenancy deposit system and will explore what improvements can be made to ensure the best possible protection for tenants.

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