Deposit Rules for Shared Houses and HMOs in Wales

If you're renting in a shared house or HMO (House in Multiple Occupation) in Wales, knowing your deposit rights helps protect you from unfair deductions or withheld money at the end of your tenancy. Whether you're a student, young professional, or simply looking for affordable accommodation, clear guidance matters. This guide walks you through shared housing deposit rules in Wales, the protections in place, and what to do if things go wrong.

Who Is Covered by Shared Housing Deposit Rules?

In Wales, most renters in shared homes, HMOs, and lodger arrangements will either have an "occupation contract" or a licence arrangement. Most tenants in shared houses, including those in HMOs, are covered by formal contract rules and deposit law. Lodgers (those who live with and share accommodation with their landlord) are not always covered—see Renting Homes Wales government guidance for details.

Occupation contracts replaced assured shorthold tenancies in Wales from December 2022 under the Renting Homes (Wales) Act 2016¹. If you've paid a security deposit, these rules apply regardless of whether you're renting a whole property or just a room in a shared house.

Deposit Protection: The Basics

Your landlord or letting agent must protect your deposit in a government-approved scheme. This protects your money and sets clear rules for how and when it can be returned to you.

• Your landlord must protect your deposit: within 30 days of receiving it.
• Written confirmation: You must receive details about the deposit protection scheme used, how to get your deposit back, and how to dispute deductions.

In Wales, approved schemes include The DPS (Deposit Protection Service), mydeposits, and Tenancy Deposit Scheme (TDS).

Special Note: Joint Tenancies and Individual Rooms

If you and your housemates signed a joint occupation contract, usually there is one deposit for the whole house, held collectively. If you each signed separate contracts for individual rooms, your deposit is held separately. Make sure you know your arrangement!

What If Your Landlord Fails to Protect Your Deposit?

If your deposit isn’t protected or you didn't receive the required information, you may be entitled to claim compensation and your landlord could face penalties. You can apply to the Residential Property Tribunal Wales for help.

To do this, you can use the following forms:

• Form RHW38: Application relating to deposit
  Download Form RHW38 (official government link)
  Use this form to ask the tribunal to decide if your deposit should have been protected or to claim compensation if it was not. For example, if you never received details of the deposit scheme within 30 days, this form is appropriate.
• Form RHW1: General application
  Download Form RHW1 (official government link)
  This general form can be used for most applications to the Residential Property Tribunal Wales, including disputes over deposit deductions if not covered by the deposit protection scheme process.

Deposit Deductions: What Is Allowed?

Landlords can only make deductions for agreed reasons, such as unpaid rent, property damage (beyond fair wear and tear), or missing items listed in your contract. Any proposed deductions should be clearly explained and supported by evidence (such as an inventory or photos).

Getting Your Deposit Back: Action Steps

At the end of your contract, your landlord should return your deposit within 10 days of agreeing the amount. Disagreements can be resolved by the relevant deposit scheme. Follow these steps:

• Request your deposit back in writing from the landlord/agent
• If there’s a dispute, raise it promptly with the scheme (e.g. DPS, mydeposits, TDS)
• If your deposit wasn't protected, consider an application to the Residential Property Tribunal Wales

Frequently Asked Questions

1. What happens if my landlord doesn’t protect my deposit in a shared house in Wales?
   You can apply to the Residential Property Tribunal Wales for compensation and your landlord may be ordered to return your deposit and pay a financial penalty.
2. Who gets the deposit back in a joint contract if someone moves out early?
   With a joint contract, the deposit is usually returned to all parties when everyone moves out at the end, unless you all agree otherwise. Be clear on the arrangements with your housemates and landlord.
3. Can my landlord deduct for cleaning or minor wear and tear?
   Landlords can deduct only for cleaning if the property was left significantly dirtier than at move-in, but not for reasonable wear and tear. Disputes can be resolved using the scheme’s dispute service.
4. How can I check if my deposit was protected?
   Ask your landlord for the deposit protection certificate or reference, or check directly with the three government-backed schemes by searching online.
5. Are lodgers entitled to deposit protection?
   As a rule, lodgers (living with the landlord) are not entitled to statutory deposit protection, but it’s best to clarify your status using government guidance and seek written confirmation from your landlord.

Conclusion: Key Takeaways for Shared House Deposits

• Your landlord must protect your deposit in a government-approved scheme and give you the details within 30 days.
• Joint tenancy deposits are usually shared; individual contracts mean individual deposits.
• If things go wrong or deductions are unfair, use the scheme’s dispute service or contact the Residential Property Tribunal Wales for help.

Understanding these rules helps you protect your money and ensure a fair outcome at the end of your contract.

Need Help? Resources for Renters

• Welsh Government: Renting Homes guidance
• Residential Property Tribunal Wales – handles disputes and deposit compensation claims
• Shelter Cymru: Free advice for renters in Wales
• UK Government: Tenancy deposit protection overview

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1. See Renting Homes (Wales) Act 2016 for the legal framework in Wales.
2. Government guidance on tenancy deposit protection
3. Residential Property Tribunal Wales (official site)
4. RHW38 – Application concerning tenancy deposits (gov.uk link)
5. RHW1 – General Application Form (official PDF)

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