After nearly 20 years leading mydeposits, I believe the private rented sector is entering one of its most significant periods. The Government is considering reforms that could reshape how tenancy deposits are protected, including a single custodial scheme, phasing out insured deposits, creating a national digital platform, and rethinking deposit transfers between homes. With over £5 billion in deposits at stake, the impact on landlords, agents, and tenants is huge.

While a single custodial provider sounds appealing, centralising all deposits brings risks. A single system concentrates responsibility, and any failure, technical, financial, or cyber would ripple across the sector. Multiple providers offer resilience and stability, a principle that underpins most national infrastructure.

“Placing every deposit in the country under a single organisation concentrates an enormous level of responsibility in one place. If that system were to falter, the entire market would feel the impact immediately.”

Landlords need more than a shiny national brand. They need confidence that claims will be handled consistently, with understanding of real-world tenancy challenges. Rushed reforms risk disruption, particularly if insured deposits are phased out too quickly or the sector must adapt alongside the Renters’ Rights Act.

A national digital platform, however, could modernise the system, supporting deposit passporting, improving data, and speeding up returns while maintaining fairness. Deposit alternatives also need transparency to avoid unfair costs and disputes for landlords.

“A national digital platform, however, presents genuine opportunity. A single front door where every landlord, agent and tenant can manage their deposits regardless of which provider is operating behind the system could bring more consistency and usability.”

The solution lies in balance: standardise technology, maintain multiple providers for resilience, phase out insured deposits gradually, and enable deposit passporting. If this is done correctly, reforms can make the system faster, fairer, and more user-friendly for landlords, tenants, and agents alike.

Read the full analysis from Eddie Hooker, CEO of mydeposits here.