Holding deposits: rules and common landlord mistakes
A holding deposit reserves a property while referencing takes place, but it is tightly regulated and easy to get wrong.
5 min read · Updated 2 August 2026
Overview
A holding deposit reserves a property while referencing takes place, but it is tightly regulated and easy to get wrong.
The cap
A holding deposit cannot exceed one week's rent, calculated using the agreed monthly or weekly rent figure.
The 15-day decision window
You must decide whether to grant, refuse or continue considering the tenancy within 15 days, or agree a longer period in writing.
When you can keep it
Only where the tenant provides false or misleading information, fails a right to rent check they should have passed, or withdraws unreasonably.
Common mistakes
Taking a holding deposit above the cap, failing to give reasons in writing for keeping it, or holding it for too long without a decision.
Frequently asked questions
How much can I take as a holding deposit?
No more than one week's rent, and only one holding deposit per property at a time.
When must a holding deposit be refunded?
Within seven days of the tenancy starting (or being credited to rent or the deposit), or within seven days of the deadline for agreement passing, unless the tenant withdrew or gave false information.
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This guide is 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.