The following rule now applies to deposits:
- Where annual rent is £50,000 or below, a maximum of five weeks’ rent can be taken
- Where annual rent is £50,001 or above, a maximum of six weeks’ rent can be taken
For example, where there are three tenants who are jointly liable for a total weekly rent of £240, the landlord or agent cannot ask each tenant to pay a tenancy deposit of up to five times the total weekly rent (5 x 240 = £1200). The maximum this group of tenants could be asked to pay as a tenancy deposit between them would be £1200. They may then choose to split this equally so that each person would pay £400.