Holding Deposit

A holding deposit is a payment made to reserve a property while the landlord or letting agent completes the referencing process and prepares the tenancy agreement.

Paying a holding deposit removes the property from the market for an agreed period, giving both you and the landlord time to complete the necessary checks before signing the tenancy agreement.

A holding deposit is not an additional fee. If your tenancy proceeds, it will normally be deducted from either your first month's rent or your tenancy deposit, with your written consent.

Under the Tenant Fees Act 2019 (England & Wales), the maximum holding deposit is one week's rent.

The amount is calculated as:

Monthly Rent × 12 ÷ 52

The holding deposit for each property is displayed before you make payment.

Only one holding deposit can be accepted for a property at any one time.

Once your payment has been received:

• The property is reserved for you.
• Referencing and any required checks begin.
• The landlord or agent prepares the tenancy agreement if your application is successful.
• Both parties are expected to enter into the tenancy agreement within 15 days of the holding deposit being received, unless a different deadline is agreed in writing.

Your application timeline and important dates will be visible throughout the process.

If your tenancy goes ahead:

• Your holding deposit will not be lost.
• With your written consent, it will be applied towards either:

  • your first month's rent, or
  • your tenancy deposit.
• You will only pay the remaining balance due.

In many cases, your holding deposit will be refunded.

You will receive a full refund if:

• the landlord decides not to proceed with the tenancy;
• the tenancy agreement is not entered into before the agreed deadline, and the delay is not your fault; or
• the tenancy proceeds and the holding deposit is instead applied towards your first month's rent or tenancy deposit.

Where a refund is due, it will normally be made within 7 days.

A landlord or letting agent may retain your holding deposit only in limited circumstances permitted by law.

These include where you:

• provide false or misleading information that materially affects your suitability to rent the property;
• choose to withdraw from the tenancy application;
• fail a required Right to Rent check; or
• fail to take reasonable steps to enter into the tenancy agreement before the agreed deadline.

If your holding deposit is retained, the landlord or letting agent must provide written reasons within 7 days. If they do not, the holding deposit must be refunded.

Where a refund is due, it will normally be processed within 7 days of one of the following:

• the landlord deciding not to proceed;
• the agreed deadline passing without a tenancy agreement (where the delay is not your fault); or
• another situation where the law requires the holding deposit to be returned.

Refunds will be made using the original payment method whenever possible.