The Renters' Rights Bill, currently before Parliament, replaces the Housing Act 2004 deposit scheme with a streamlined framework. The headline change: the return window narrows from the previous "promptly" standard to a hard 10-day deadline, counted from the day the tenancy ends or the parties agree on deductions — whichever is later.

Landlords who miss the deadline will owe statutory interest on the outstanding amount at 8% per year, calculated daily. The existing three-times-deposit penalty for failing to protect a deposit in an approved scheme is retained.

The Bill also removes the requirement to re-protect a deposit when a fixed-term tenancy rolls onto a periodic tenancy — a rule that had generated significant litigation since Superstrike v Rodrigues (2013).