Holding deposit
A refundable payment to reserve a property while checks are done.
3 min read · Updated 2 August 2026
Overview
A holding deposit is a payment to reserve a property while referencing and checks are completed. It is capped at one week's rent. It must be refunded or applied to the first month's rent or tenancy deposit within 15 days, unless the applicant withdraws, fails referencing through their own fault, or provides misleading information.
Legal requirements
- Cap the holding deposit at one week's rent.
- Decide and refund or apply it within 15 days.
- Do not take a holding deposit while another is still held for the same property.
Common mistakes
- Keeping the holding deposit where the landlord or agent caused the delay.
- Taking more than one week's rent.
This wiki entry 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.