What is a holding deposit and can I get it back?

A holding deposit is a sum you pay to reserve a property while referencing checks are completed. It can be no more than one week's rent. It is not the same as your tenancy deposit.

Once you pay a holding deposit, the landlord must stop marketing the property and take it off the market for you. If you proceed with the tenancy, the holding deposit is usually put towards your first month's rent or your full deposit.

You are entitled to get the holding deposit back in full if: the landlord decides not to proceed with the tenancy; the landlord fails to provide you with required information within 15 days; or you are not given a tenancy agreement within 15 days of paying the deposit.

You lose the holding deposit if: you decide not to proceed; you fail referencing checks because you provided false information; or you fail to take reasonable steps to complete the tenancy. The landlord must tell you in writing within 7 days of ending the agreement why they are keeping it.

If your landlord is refusing to return a holding deposit and you think they shouldn't keep it, contact your local council's trading standards team or get advice from Citizens Advice (citizensadvice.org.uk). These rules are set by the Tenant Fees Act 2019.