Tenancy deposit
2(1)A payment of a tenancy deposit is a permitted payment.
(2)In this Act “tenancy deposit” means money intended to be held (by a landlord or otherwise) as security for—
(a)the performance of any obligations of a tenant, or
(b)the discharge of any liability of a tenant,
arising under or in connection with a tenancy.
(3)But if the amount of the tenancy deposit exceeds—
(a)the amount of five weeks’ rent, where the annual rent in respect of the tenancy immediately after its grant, renewal or continuance is less than £50,000, or
(b)the amount of six weeks’ rent, where the annual rent in respect of the tenancy immediately after its grant, renewal or continuance is £50,000 or more,
the amount of the excess is a prohibited payment.
(4)In this paragraph—
(a)“five weeks’ rent” means five times one week’s rent,
(b)“six weeks’ rent” means six times one week’s rent, and
(c)“one week’s rent” means the amount of the annual rent payable in respect of the tenancy immediately after its grant, renewal or continuance divided by 52.