Holding deposit
A payment of up to one week's rent to reserve a home while the landlord checks an application. It must be returned or put towards the rent or deposit.
In short: A holding deposit reserves a property while references and checks are done. Under the Tenant Fees Act 2019 it is capped at one week's rent and must be returned within seven days unless the tenancy goes ahead or the applicant gave false information, failed a right to rent check or pulled out.
England. Checked against the law on 5 October 2026. Information, not legal advice.
The rules are in Schedule 2 of the Tenant Fees Act 2019:
- Cap: one week's rent.
- Deadline for agreement: usually 15 days from paying it, unless both agree another date in writing.
- Return within 7 days of the tenancy being agreed (or put towards the first rent or the deposit), the landlord deciding not to go ahead, or the deadline passing without fault on the applicant's side.
- Kept only if the applicant gave false or misleading information, failed the right to rent check, withdrew, or did not take reasonable steps to agree the tenancy. The landlord must say why in writing within seven days.
Only one holding deposit can be taken on a property at a time.
Read more: Fees a landlord or agent cannot charge you, and rent in advance
Related: Deposit cap, Prohibited payment
Where this comes from
Guides on this
Template
Inventory and schedule of condition, room by room
A room-by-room record of what is in the home and what state it is in on the day the tenant moves in, with meter readings, keys, photos and signatures. It is the evidence both sides rely on when the deposit is returned.
Guide
Deposits: the cap, the 30 days and the prescribed information
A tenancy deposit in England is capped at five weeks' rent, must be protected in a government-approved scheme within 30 days, and the tenant must get the prescribed information. Miss any of that and you face a penalty of up to three times the deposit.
Guide
Rent in advance and rent bidding: what the Renters’ Rights Act allows
Since 1 May 2026 you cannot take rent before the tenancy agreement is signed, can take at most one month's rent before it starts, and cannot invite or accept offers above the rent you advertised.
Guide
How to protect a tenancy deposit, and what happens if you are late
Put the deposit in one of the three government schemes within 30 days and give the prescribed information. If late, the tenant can claim one to three times the deposit and most possession grounds close.
Related terms
Glossary
Check-in and check-out
The visits at the start and end of a tenancy where the home is inspected against the inventory, keys are handed over and meter readings are taken.
Glossary
Client money protection (CMP)
Cover that repays landlords and tenants if an agent loses or misuses money it holds for them. Compulsory for agents in England that hold client money.
Glossary
Deposit cap
The most a landlord in England can take as a tenancy deposit: five weeks' rent where the annual rent is under £50,000, six weeks' at £50,000 or more.
Glossary
Fair wear and tear
The normal deterioration of a home and its contents from ordinary, reasonable use over time. A landlord cannot deduct for it from the deposit.
Glossary
Guarantor
A person who promises in writing to pay the rent, or cover other losses, if the tenant does not. Often asked of students or people on a lower income.
Glossary
Inventory and schedule of condition
A dated record of what is in the home and the condition of each room and item at the start of a tenancy, usually with photos, signed by both sides.