A deposit for a rental property is capped at five weeks of the monthly rent, plus the first month’s rent upfront. The only time it will be higher is if the rent is £50,000 a year or more, but this is also legally capped to six weeks. For the tenant’s protection, the landlord must put the deposit amount into a government-approved deposit scheme. Doing so ensures the landlord can only retain the deposit or part of the deposit if they have the evidence and good reason for doing so, and the tenant agrees to it. As a result of these expensive amounts, it’s no surprise that one of the most common requests to The Money Shop is a loan to cover a rental deposit on a new home.
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