Before the Tenant Fees Act 2019, there was no legal limit on how much a landlord could charge as a security deposit. Some landlords demanded two or three months' rent upfront, putting a significant financial burden on tenants at the start of a tenancy.
The deposit cap changed this. If your annual rent is under £50,000 (which covers the vast majority of private tenancies), the maximum deposit is five weeks' rent. If your annual rent is £50,000 or above, the cap is six weeks' rent. Any deposit above these limits is a prohibited payment under the Tenant Fees Act.
To calculate the cap: take your monthly rent, multiply by 12, divide by 52, then multiply by 5 (or 6 if above the £50,000 threshold). For example, if your rent is £1,000 per month, the maximum deposit is £1,153.85 (£12,000 divided by 52, multiplied by 5).
If your landlord has charged you more than the legal maximum, the excess is a prohibited payment. You can report it to your local council and recover the overpayment.
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