The government has said it will use the re-procurement of tenancy deposit scheme contracts to make sure the system delivers good value for landlords and tenants, with the current Tenancy Deposit Scheme contracts due to end in March 2028.
The point was confirmed in a written parliamentary answer from housing minister Matthew Pennycook after a Labour MP asked what steps ministers were taking to ensure deposit schemes remain transparent and provide value for money.
For landlords, the update matters now because deposit protection remains tied directly to possession rights under the Renters’ Rights Act, while the government’s answer signals fresh scrutiny of scheme performance well before the 2028 contract deadline.
Government confirms 2028 reset for deposit scheme contracts
Pennycook said the recent extension of the Tenancy Deposit Scheme contracts had already secured better value for money, stronger performance measures and improved transparency. He added that ministers would use the next procurement process to make sure the service continues to offer good value to landlords and tenants.
The current contracts are due to end in March 2028, with a new procurement exercise expected before then. The written parliamentary answer does not mean landlords need to switch schemes now, and it does not suggest deposit protection rules are changing immediately. But it does confirm that ministers are already looking ahead to the next contract cycle.
Landlords must still protect deposits in a government-approved scheme and comply with the related legal requirements if they want to keep key possession options open.
Deposit compliance still links directly to possession
That point has become more important since the Renters’ Rights Act took effect. As Landlord Knowledge recently reported on the Section 21 court deadline, landlords are now working inside a possession system where procedural compliance matters more, not less.
The government’s latest answer also sits alongside Landlord Knowledge’s deposit protection guide, which sets out the penalties and process risks that follow when deposits are handled badly. The main fresh angle here is that ministers are not treating scheme oversight as settled – they are already preparing to test value, transparency and performance again before 2028.
That may not sound dramatic, but it matters for landlords who rely on deposit schemes as part of the everyday legal machinery of running a tenancy. If the procurement process tightens service standards or reporting, agents and self-managing landlords may face a more closely watched system.
It also suggests deposit scheme governance will stay in view as ministers bed in the post-Renters’ Rights Act regime. In other words, deposit protection is no longer just an administrative box to tick – it is part of the compliance backbone landlords need in place before a dispute or possession case ever starts.
What this means for landlords
- If you self-manage: double-check that every protected deposit has the right paperwork and prescribed information attached.
- If you use an agent: confirm who is responsible for protection, deadlines and record-keeping, rather than assuming the process is covered.
- Watch for: government updates on the next contract procurement and any tougher service or transparency requirements before 2028.
- Bottom line: ministers are reviewing scheme value, but the immediate landlord risk remains simple non-compliance.
Editor’s view
There is no headline rule change here, but landlords should not dismiss it as background noise. When ministers start talking about value, transparency and performance, it usually means the system is being looked at more closely than before.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 17 June 2026
Sources: UK Parliament, Ministry of Housing, Communities and Local Government
Related reading: Tenancy Deposit Protection: Rules, Schemes & Penalties (2026 Guide)
