What is a holding deposit?

A payment to reserve a property while referencing happens. It is capped at one week’s rent and it is not the same as the tenancy deposit.

You have 15 days from taking it to enter into the tenancy or agree a longer deadline in writing. If the tenancy goes ahead, it comes off the first rent or the deposit.

You have to refund it if you pull out, if you fail the Right to Rent check on your side, or if you simply let the 15 days pass. You can keep it if the tenant provides false information, fails a Right to Rent check, or withdraws.

Taking more than one week’s rent, or taking holding deposits from several applicants for the same property, both breach the Tenant Fees Act.