Holding deposits: how much, when you get it back, and when you don’t

By Sam Kane · Last checked 5 October 2026 · Covers England only

A holding deposit means money you pay to reserve a home while the landlord runs their checks. In England, it can be no more than 1 week’s rent. You get it back within 7 days in most cases, but a landlord can keep it if you pull out, give false information or fail a right to rent check.

This guide explains the rules, set by the Tenant Fees Act 2019, in plain words.

The short version

What is a holding deposit?

A holding deposit reserves a home for you. While you hold it, the landlord or letting agent runs checks such as references, a credit check and a right to rent check. It is meant to stop the landlord letting the home to someone else in the meantime.

It is different from a tenancy deposit. A tenancy deposit is the larger sum you pay to cover damage or unpaid rent during the tenancy. It must be protected in a government scheme. A holding deposit does not have to be protected, unless it becomes part of your tenancy deposit.

Paying a holding deposit is step 5 in our step-by-step guide to renting a home.

How much can a holding deposit be?

The legal limit is 1 week’s rent. To work out a week’s rent from a monthly rent, multiply the monthly rent by 12 and divide by 52.

Monthly rent One week’s rent (the maximum holding deposit)
£800 £184.61
£1,000 £230.76
£1,200 £276.92
£1,500 £346.15

Figures are rounded down to the penny, so you never pay over the limit.

If a landlord or agent asks for more than this, the extra is a banned payment. You can refuse to pay it.

How long does a landlord have to agree the tenancy?

The law calls it the “deadline for agreement”. It is the 15th day, counting the day the landlord or agent receives your money as day 1.

By that day, you and the landlord should have signed the tenancy agreement. You and the landlord can agree a different deadline, but it must be in writing.

When must the landlord pay it back?

Your landlord or agent must repay your holding deposit if:

  1. you sign the tenancy agreement
  2. the landlord decides not to rent to you before the deadline
  3. the deadline passes without a signed agreement, and the delay was not your fault

They must repay it within 7 days. The 7 days start from the date of the tenancy agreement, the date the landlord decides not to go ahead, or the deadline, depending on which applies.

If you sign, you can agree to let the money go towards your first month’s rent or your tenancy deposit instead of getting it back. This is what usually happens.

When can the landlord keep it?

The landlord can keep your holding deposit only if:

If the landlord wants to keep it, they must tell you in writing, within 7 days, why they are keeping it. If they do not, they must pay it back.

When they must pay it back even if you pull out

Your landlord cannot keep the money because you pulled out or missed the deadline if, before the deadline, they or their agent:

For example, if the agent suddenly asks for an admin fee, or changes the rent, you can walk away and still get your holding deposit back.

Before you pay a holding deposit

  1. See the home first, in person or on a live video call. Never pay for a home you have not seen.
  2. Ask for the tenancy agreement and read it. GOV.UK advises tenants to read and keep a copy before paying.
  3. Check the amount is no more than 1 week’s rent.
  4. Get the deadline in writing. Note the date in your phone.
  5. Pay by bank transfer or card, not cash, and ask for a receipt.
  6. Know the landlord’s or agent’s name and address.

Only pay a holding deposit on a home you really want. If you pay on two homes and then pull out of one, you are likely to lose that money.

If your landlord will not return it

  1. Ask in writing. Email the landlord or agent, quote the rules above and give a date to pay by. Keep a copy.
  2. Complain to the agent’s redress scheme, if an agent took the money. Every letting agent must belong to The Property Ombudsman or the Property Redress Scheme. Their service is free.
  3. Contact your local council. The council enforces the Tenant Fees Act. It can make the landlord or agent repay you and fine them.
  4. Apply to the First-tier Tribunal (Property Chamber). It can order the landlord or agent to repay you. Check the fee on GOV.UK; you may get help with it.

Keep evidence: adverts, emails, texts, receipts and bank statements.

Common questions

Is a holding deposit refundable?

Yes, in most cases. You get it back within 7 days if the tenancy goes ahead, the landlord pulls out, or the deadline passes without it being your fault. The landlord can keep it only for set reasons, such as false information or you pulling out.

Is the holding deposit part of the rent?

It can be, if you agree. Once you sign, the money can go towards your first month’s rent or your tenancy deposit instead of being refunded.

Can I get my holding deposit back if I change my mind?

Usually not. If you tell the landlord you no longer want the home, they can keep it. The exception is if they asked for a banned fee or treated you unreasonably first.

Does a holding deposit have to be protected?

No. A holding deposit does not need to go into a deposit protection scheme. If it becomes part of your tenancy deposit, that tenancy deposit must be protected.

Can a landlord ask for rent instead of a holding deposit?

No. Since 1 May 2026, a landlord cannot ask for or accept rent before you both sign the tenancy agreement. After you sign, they can ask for up to 1 month’s rent in advance.

Where to get free help

Sources

This guide is general information, not legal advice.

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