Maximum Tenancy Deposit: How to Calculate Five Weeks’ Rent

Making sure your tenancy deposit is legally compliant is more critical in 2026 than ever before. 

With the full implementation of the Renters’ Rights Act in England in May, the penalties for overcharging or mishandling deposits are becoming more stringent.

If you’re unsure how to work out the maximum deposit for a new tenancy, our updated calculator and guide below can help. You’ll also find a summary of the rules in Scotland and Wales.

1. Tenancy deposit and holding deposit calculator
2. When did deposit rules come into effect?
3. What are the rules for Scotland and Wales?

Tenancy deposit and holding deposit calculator

Simply enter your monthly rent amount for the property you’re advertising, and we’ll instantly show you the maximum security deposit you can charge.

Our calculator automatically adjusts the cap to six weeks’ rent if your annual rent surpasses £50,000, in line with the current regulations.

The calculator also shows you the maximum holding deposit, which is equal to one week’s rent.

If you’d rather work it out with pen and paper, you can follow the government-approved method:

1. Multiply your monthly rent by 12 to get the annual rent
2. Divide that by 52 to find the weekly rent
3. Multiply the weekly rent by 5 to calculate five weeks’ rent

For a quicker shortcut, you can simply multiply your monthly rent by 1.15385 – or, for the easiest option, just pop your monthly rent into the calculator above 😉.

When did deposit rules come into effect?

The current landscape of tenancy deposit rules is the result of two major legislative milestones. Mandatory Tenancy Deposit Protection (TDP) first came into effect in 2007 under the Housing Act 2004, requiring all landlords of assured shorthold tenancies (ASTs) to register deposits with a government-approved scheme. 

However, the specific five-week rent cap was introduced much later, under the Tenant Fees Act, which came into force in 2019 for new and existing tenancies in England.

By 1st June 2020, these limits were extended to cover almost all existing tenancies in England, ensuring that any deposit held above the legal threshold had to be returned to the tenant.

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What are the rules for Scotland and Wales?

While England introduced the five-week cap in 2019, the Welsh Government chose not to include a similar limit in its own legislation. Instead, the Renting Homes (Fees etc.) (Wales) Act 2019, which came into effect on 1st September 2019, primarily focused on banning most other up-front fees.

Welsh landlords can technically request any amount, though most typically ask for the equivalent of one month or six weeks’ rent. Holding deposits are capped at a maximum of one week’s rent.

In Scotland, the maximum amount a landlord or letting agent can charge for a tenancy deposit is two months' rent. This cap dates further back than the one in England, having been established under the Rent (Scotland) Act 1984. 

Be aware that holding deposits are illegal in Scotland, and landlords or agents cannot charge “premiums” or “key money” just to reserve a property.

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