Can I charge a holding deposit?
Yes, but in England and Wales a holding deposit is capped at one week's rent and can only be held while referencing is completed.
3 min read · Updated 2 August 2026
Overview
Yes, but in England and Wales a holding deposit is capped at one week's rent and can only be held while referencing is completed. It must be refunded, or applied to the rent or deposit, within 15 days unless the tenant withdraws, fails a Right to Rent check or gives false information.
Practical guidance
- Put the deadline for agreement in writing before you take the money.
- Refund within seven days of the deadline passing or the tenancy starting, unless a statutory exception applies.
- If you keep it, give the tenant written reasons within seven days.
Related content
General information for UK landlords and letting agents, not legal advice. Rules differ across England, Wales, Scotland and Northern Ireland — check your local requirements or take advice before acting.