A holding deposit can only be one week's rent and must be returned in 15 days, with limited exceptions. Here is how to get yours back.
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A holding deposit is the money you pay to "reserve" a rental while paperwork is done. Under the Tenant Fees Act 2019 it can only be one week's rent, and the landlord or agent must either turn it into your tenancy deposit or refund it within 15 days of you paying it (the "deadline for agreement"). If they keep it without a valid reason, you can get it back. Call us free on 0800 030 4669.
What a holding deposit is
It is a small payment that takes a property off the market while:
- Reference checks happen.
- The tenancy agreement is drawn up.
- A guarantor is checked if required.
It is not your tenancy deposit, which is a separate, larger payment held in a government-approved scheme.
How much it can be
Maximum one week's rent. To calculate one week, take the annual rent and divide by 52. Anything more is a banned payment under the Tenant Fees Act.
If you were charged more, the extra is recoverable. See the Tenant Fees Act, getting fees back.
When the landlord can keep it
The landlord can keep the holding deposit only if one of these is true:
- You withdraw from the agreement after paying.
- You fail a Right to Rent immigration check that you should have passed.
- You gave false or misleading information in your application.
- You failed to take reasonable steps to enter the tenancy by the deadline (for example, you stopped replying).
Even then, the landlord must give you a written reason within 7 days of deciding to keep it. If they do not, they cannot keep it.
When they have to give it back
In every other situation, the holding deposit must be returned. The most common returns are:
- The landlord pulls out of the agreement.
- The tenancy paperwork is never signed by the 15-day deadline.
- You sign the tenancy and the deposit becomes your tenancy deposit (must be protected in a scheme within 30 days).
What to do if they will not return it
- Send an email asking for the refund. Quote the Tenant Fees Act 2019 and the 15-day rule.
- Keep all messages and receipts.
- If the letting agent is part of The Property Ombudsman or The Property Redress Scheme, file a complaint with them. Free to you.
- Report it to your council's Trading Standards team. They can fine the landlord up to £5,000 for a first breach.
- As a last step you can take it to the small claims court (England and Wales): money claim online via gov.uk/make-money-claim. Court fee scales with the amount.
What if I was discriminated against
If the landlord refused you because of race, religion, gender, disability, family status, or because you receive benefits, that may also be a breach of the Equality Act 2010. See landlord saying "no DSS" or "no benefits".
How we can help
We help with disrepair claims, not deposit disputes directly. If the property turned out to be in disrepair and that is why the move-in collapsed, call us free on 0800 030 4669 and we will take a look. Otherwise the routes above are your fastest way to get the money back.
Free call: 0800 030 4669 | Start your claim
Sources
We review every guide at least twice a year and update it when the law changes. If you spot something out of date or wrong, email help@supportfortenants.co.uk.
Reviewed against current housing law for England and Wales as at 28 May 2026. Checked by our SRA-regulated panel solicitors. This is general information, not legal advice for your specific case. Any compensation figures or ranges shown are illustrative only and not guaranteed; every case is different.
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