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What is a Deposit with the DPS?
X1 Sales & Lettings are registered with the DPS – Deposit Protection Service.
The Deposit Protection Service (DPS) is one of the government-approved tenancy deposit schemes in England and Wales, established under the Housing Act 2004 to protect residential tenants’ security deposits throughout the tenancy. It exists to safeguard deposit funds and provide a neutral way to resolve disputes between landlords and tenants over final deductions.
Landlords and letting agents are legally required to protect a tenant’s deposit within 30 days of receiving it. There are two ways this can be done: a custodial scheme, where the DPS holds the deposit for the duration of the tenancy free of charge, or an insured scheme, where the landlord retains the deposit and pays a fee to insure it with the DPS.
Alongside protecting the deposit itself, landlords must also provide tenants with Prescribed Information – confirming the scheme used, the registration number, and the amount protected -within the same 30-day window.
We make sure every deposit we handle is protected correctly and on time, giving both landlords and tenants complete peace of mind from day one of the tenancy.
What is the Reposit Scheme?
Reposit is a deposit replacement scheme -an alternative to a traditional cash deposit. Instead of paying five weeks’ rent upfront, tenants pay a one-off, non-refundable fee equivalent to one week’s rent, freeing up cash for moving costs while still giving landlords robust protection.
Tenants remain fully liable for any unpaid rent or damage at the end of the tenancy, just as they would with a cash deposit.
If a claim needs to be made, it’s handled through independent adjudication, with disputes typically resolved within 14 days and landlords paid out in less than 20 days.
Landlords using Reposit benefit from enhanced cover – typically up to eight weeks’ worth of protection, compared to five weeks with a standard cash deposit – at no extra cost to them.
We’re proud to offer Reposit as an option alongside traditional deposits, giving tenants a more affordable way to move in and landlords added peace of mind.
What Is a Holding Deposit?
A holding deposit is a payment made to reserve a rental property while your application is being processed. By paying a holding deposit, you confirm your intention to rent the property, and we will take it off the market while we carry out referencing checks with Let Alliance.
How Much Is a Holding Deposit?
Under the Tenant Fees Act 2019, a holding deposit cannot exceed the equivalent of one week’s rent.
Once paid, we will complete reference and affordability checks with Let Alliance. If your application is successful, the holding deposit will be applied to your first month’s rent or refunded to you.
When Might a Holding Deposit Be Retained?
In some cases, the holding deposit may be retained if:
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You decide not to go ahead with the tenancy.
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You fail the right-to-rent checks.
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You provide false or misleading information.
If X1 Sales and Lettings decides not to proceed with the tenancy for reasons unrelated to your application, your holding deposit will be refunded in full within 7 days.
For any questions about holding deposits, please contact your local X1 Sales and Lettings branch.