Holding Deposit
A payment of up to one week's rent that reserves a property for an applicant while referencing completes. Strict rules govern when it must be refunded and when it can be kept.
A holding deposit takes a property off the market while checks complete. The Tenant Fees Act 2019 caps it at one week's rent (monthly rent × 12 ÷ 52) and only one can be held per property at a time.
The 15-day rule
By default, the tenancy agreement must be entered into within 15 days of receiving the deposit, unless a different deadline is agreed in writing. If the tenancy goes ahead, the deposit is refunded or, with the applicant's consent, put towards the first rent payment or the tenancy deposit.
When it must be refunded
In full, within seven days, if the landlord withdraws, or the deadline passes through no fault of the applicant.
When it can be kept
Only if the applicant withdraws, fails a right to rent check, provides false or misleading information that reasonably affects the decision, or fails to take reasonable steps to enter the agreement. The applicant must be told in writing why, within seven days.
Since May 2026 landlords also cannot require any rent to be paid before the tenancy agreement is signed, and no more than one month's rent in advance.