The "Holding Deposit".

Did they keep your holding deposit?

Landlords and agents may try to keep the "holding deposit" (1 week's rent) if you don't move in. This is often illegal if you are not at fault for not moving in.

Under the Tenant Fees Act 2019, they can ONLY keep it if:

  1. You pulled out of the deal.
  2. You failed a Right to Rent check.
  3. You gave false or misleading information.
  4. You failed to sign the contract within 15 days (and they took all reasonable steps to get you to sign).

They CANNOT keep it if:

  • The landlord decided not to rent to you.
  • They just "changed their mind."
  • The credit check failed (unless you lied about your income).

The Recovery Script

If they are refusing to return your money, send this email.

Subject: Return of Holding Deposit - [Address]

Dear [Agent/Landlord Name],

I am writing to request the immediate return of my holding deposit of £[Amount], paid on [Date].

As per the Tenant Fees Act 2019, a holding deposit must be returned within 7 days if the tenancy does not proceed, unless a specific valid reason applies.

Since [reason, e.g., "you decided not to proceed with my application" or "I did not provide false information"], you have no legal grounds to retain these funds.

Please refund the full amount to the following account within 3 working days: [Bank Details]

If I do not receive the funds, I will report this breach to Trading Standards and The Property Ombudsman.

Sincerely, [Your Name]

Take Action

Warn other renters about agents or landlords who steal deposits. Soon you will be able to report them on Flatm8, and use our search feature to find your local housing union by postcode and get involved! Join the Waitlist