A holding deposit (up to one week’s rent) is taken to reserve a property while a tenancy is agreed. The property will be held for up to 15 calendar days (the “deadline for agreement”), unless both parties agree in writing to extend this period.
The holding deposit may be retained if the applicant provides false or misleading information which reasonably affects the landlord or agent’s decision to let the property to them, if they fail a Right to Rent check, if they withdraw from the proposed tenancy (i.e. decide not to proceed), or if they fail to take all reasonable steps to enter into the tenancy agreement when the landlord or agent has also taken all reasonable steps to do so.
Where the holding deposit is retained, the reason will be provided in writing within 7 days of the decision or within 7 days of the ‘deadline for agreement’, whichever is earlier.
If the tenancy proceeds, the holding deposit will be deducted from the first rent payment or tenancy deposit.
