For renters

Can I get my holding deposit back in England?

Guide · about 10 min read · Covers the law in England as at October 2026 · Reviewed on 26 October 2026

In England, the law's starting point is that a holding deposit must be repaid, and it cannot be more than one week's rent. Under Schedule 2 to the Tenant Fees Act 2019, repayment is due within 7 days if a tenancy agreement is made, the landlord decides before the deadline not to proceed, or no agreement is reached by the deadline. The default deadline is the fifteenth day of the period beginning with the day the deposit is received, unless a different day is agreed in writing. A landlord may keep a deposit only for reasons listed in the Act, for example if an applicant provides misleading information or decides not to enter into the tenancy. If a landlord keeps a holding deposit, the reasons must be given in writing within 7 days, or the deposit must be repaid.

This guide covers England only and is general information, not legal advice. Under section 28 of the Tenant Fees Act, as amended by the Renters' Rights Act 2025, the Act covers assured tenancies other than social housing, certain student lettings and most licences to occupy housing.

How much can a landlord ask for as a holding deposit?

One week's rent at most. Under paragraph 3 of Schedule 1 to the Tenant Fees Act 2019, any amount over one week's rent is a prohibited payment.

One week's rent is the annual rent payable immediately after the tenancy is granted, divided by 52.

Monthly rent	Annual rent	Cap (annual rent ÷ 52, rounded down to the penny)
£900	£10,800	£207.69
£1,200	£14,400	£276.92
£1,500	£18,000	£346.15
£2,000	£24,000	£461.53

A holding deposit is separate from the tenancy deposit, which has its own cap and, where they apply, protection rules. It is not a referencing fee under another name, as our guide on whether a landlord can charge for referencing explains.

When does a landlord have to give a holding deposit back?

Subject to the exceptions covered below, paragraph 3 of Schedule 2 requires repayment if:

the landlord and the tenant enter into a tenancy agreement;
the landlord decides, before the deadline for agreement, not to enter into one; or
the landlord and the tenant fail to enter into one before the deadline for agreement.

Paragraph 4 says repayment must be made within the period of 7 days beginning with the date of the tenancy agreement, the date the landlord decides not to proceed, or the deadline for agreement, depending on which trigger applies.

The deadline for agreement is defined in paragraph 2. It is the fifteenth day of the period beginning with the day on which the landlord or letting agent receives the holding deposit. The landlord or agent and the tenant can agree a different day in writing.

Example	Date
Holding deposit received (day one)	Tuesday 3 November 2026
Default deadline for agreement (day fifteen)	Tuesday 17 November 2026
If no tenancy agreement is entered into by then, the 7 day repayment period runs	17 to 23 November 2026

If the landlord decides on 10 November not to go ahead, the 7 days begin with 10 November.

When can a landlord keep a holding deposit?

Only for the reasons Schedule 2 lists, and only where the landlord decides before the deadline not to go ahead, or no tenancy agreement is entered into by the deadline.

If a tenancy agreement is made, the holding deposit must be repaid within 7 days, except to the extent that it is applied, with the consent of the person who paid it, towards the first rent or the tenancy deposit (see below).

The exceptions are:

There is a Right to Rent issue. Section 22 of the Immigration Act 2014 prohibits the landlord from letting to the applicant, and the landlord, and any agent, did not know and could not reasonably have been expected to know this before taking the deposit (paragraph 8). Right to Rent is the landlord's own legal duty (see how Right to Rent works).
The applicant provides false or misleading information. This applies only where the landlord is reasonably entitled to take the difference from the correct information, or the act of giving it, into account in deciding whether to grant a tenancy (paragraph 9).
The applicant decides not to proceed. The applicant tells the landlord or agent before the deadline that they have decided not to enter into a tenancy agreement. This removes only the duty that arises when the deadline passes (paragraph 10).
The applicant fails to take reasonable steps. The landlord and any agent took all reasonable steps to enter into a tenancy before the deadline, but the applicant did not. This too affects only the deadline duty (paragraphs 11 and 12).

Under paragraph 13, the last two exceptions do not apply if, before the deadline, the landlord or agent imposed a requirement prohibited by section 1 or 2, such as a banned fee, or behaved in such a way that it was unreasonable to expect the applicant to enter into a tenancy agreement. A failed reference or credit check is not, on its own, a listed reason to keep a holding deposit.

Does a landlord have to tell me in writing why they are keeping it?

Yes. A landlord or letting agent who received a holding deposit and intends to keep it, because they believe one of the exceptions applies, must give the person who paid it a written notice explaining why. This is a requirement of paragraph 5 of Schedule 2 to the Tenant Fees Act 2019. If they do not give this notice within the time limit, the deposit must be repaid.

The relevant period is 7 days. This period begins on the date the landlord decides, before the deadline for agreement, not to enter into a tenancy agreement, or on the deadline for agreement if no tenancy is entered into by then.

The GOV.UK guidance for tenants explains that if a person does not receive the decision within 7 days, or in writing, or disagrees with the reasons, the matter can be raised with the local council or the First-tier Tribunal.

Can my holding deposit go towards my first rent or deposit?

Yes, with the consent of the person who paid it. When a tenancy agreement is made, the holding deposit must be repaid within 7 days, except to the extent that, with that consent, it is put towards the first rent or the tenancy deposit. This is from paragraph 6 of Schedule 2 to the Tenant Fees Act 2019.

If the holding deposit is put towards the tenancy deposit, it is treated as received on the tenancy agreement date for the purposes of the deposit rules in section 213 of the Housing Act 2004. This is paragraph 7. VEYLO X does not protect deposits for landlords.

Did the Renters' Rights Act 2025 change holding deposits?

The Renters' Rights Act 2025 did not change the holding deposit rules within the Tenant Fees Act 2019. Checked on legislation.gov.uk on 26 October 2026, the text of paragraph 3 of Schedule 1 and Schedule 2 shows no amendment.

It did change related rules:

Section 27 of the Renters' Rights Act 2025 changed which tenancies the Tenant Fees Act covers, from assured shorthold tenancies to assured tenancies other than social housing.
Section 9 of the Renters' Rights Act 2025 made rent payable before an assured tenancy is entered into a prohibited payment. Landlords and agents cannot invite, encourage or accept such a payment.
Section 8 of the Renters' Rights Act 2025 inserted section 4B, on rent in advance, into the Housing Act 1988. Section 4B(8) points to Schedule 2 of the Tenant Fees Act for using a holding deposit to pay initial rent due between the tenancy being entered into and its first day.

These changes took effect on 1 May 2026 for assured tenancies other than social housing assured tenancies, under regulation 2 of the Commencement No. 2 Regulations.

So for a private assured tenancy, rent cannot be required before the tenancy is entered into. A holding deposit within the legal cap can still be a permitted payment, subject to the rule on earlier unrepaid deposits below.

Can a landlord take a holding deposit from more than one person?

Not while an earlier one is unresolved. Under paragraph 3(5) of Schedule 1 to the Tenant Fees Act 2019, a holding deposit is not a permitted payment if the landlord or letting agent has already received one for the same home, has not repaid all or part of it, and none of paragraphs 6 to 12 of Schedule 2 allowed them to keep it.

How do I get my holding deposit back if the landlord refuses?

There are four routes. Shelter and Citizens Advice give free advice, and a solicitor can also advise.

Ask in writing. Ask for the deposit back by a set date, citing Schedule 2, and keep a copy.
The agent's redress scheme. Under article 3 of the Redress Schemes for Lettings Agency Work and Property Management Work (Requirement to Belong to a Scheme etc) (England) Order 2014, a letting agent in England must belong to a redress scheme for complaints about its lettings work, including from prospective tenants. GOV.UK tenant guidance names two: The Property Ombudsman and Property Redress.
The local council. Section 6 of the Tenant Fees Act makes it the duty of every local weights and measures authority in England, usually trading standards, to enforce Schedule 2. A district council may also enforce it (section 7). For a Schedule 2 breach, an authority can issue a financial penalty of up to £5,000 (section 8) and may then require the deposit to be repaid, unless the person who paid has already applied to the tribunal (section 10). Repayment can also be required where only incorrect Secretary of State information about Right to Rent bars a penalty.
The First-tier Tribunal. Section 15 allows the person who paid to apply to the tribunal to recover a holding deposit, or the part still owed, where the landlord or agent has breached Schedule 2. Under both section 10 and section 15, money already applied with the payer's consent towards rent or the tenancy deposit cannot be recovered. The tribunal may order payment within 7 to 14 days, beginning with the day after the order, and the order is enforceable through the county court. This route is closed if an authority has begun criminal proceedings for the same breach, or has already required repayment. Under section 16, the council may help with the claim.

A decision to order repayment is for the tribunal or the council, on the facts.

Does VEYLO X decide whether a holding deposit is returned?

No. VEYLO X is a software platform for renting and letting in England. The Schedule 2 duties sit with the landlord or agent who received the deposit. VEYLO X does not decide whether a holding deposit is kept or returned, and takes no part in disputes. On VEYLO X, before a landlord can take a holding deposit, a property ownership check is completed, and what the HM Land Registry register showed on that date is kept on the record. It is not a guarantee about the landlord. See checking who owns a property to read the register yourself.

Common questions

The short answers, in one place.

How much can a landlord charge for a holding deposit in England?

The amount is capped at a maximum of one week's rent. Under Schedule 1 to the Tenant Fees Act 2019, one week's rent is calculated by dividing the annual rent by 52. Any amount requested above this limit is a prohibited payment. For a monthly rent of £1,200, the maximum holding deposit is £276.92.

How long does a landlord have to return a holding deposit?

Seven days, counting the starting day as day one. Under Schedule 2 to the Tenant Fees Act 2019, the 7 days begin with the date the tenancy agreement is entered into, the date the landlord decides, before the deadline for agreement, not to let the property, or the deadline for agreement if no tenancy agreement is entered into by then. The Act also sets out exceptions for when a landlord can keep the holding deposit, and a holding deposit can be put towards the first rent or the tenancy deposit with the payer's consent.

What is the deadline for agreement for a holding deposit?

By default, the deadline for agreement is the fifteenth day of the period beginning with the day the landlord or letting agent receives the holding deposit. The landlord or agent and the tenant can agree a different deadline in writing.

Can a landlord keep a holding deposit if the tenant changes their mind?

Sometimes. Under Schedule 2 to the Tenant Fees Act 2019, the duty to repay that arises when the deadline for agreement passes does not apply if the tenant tells the landlord or agent before the deadline that they have decided not to enter into a tenancy agreement. That does not remove the separate duty to repay if the landlord decides, before the deadline, not to proceed, unless paragraph 8 or 9 of Schedule 2 applies. The tenant's withdrawal also cannot be relied on if, before the deadline, the landlord or agent imposed a requirement prohibited by section 1 or 2 of the Act, or behaved in such a way that it would be unreasonable to expect the tenant to enter into a tenancy agreement. If a landlord or agent keeps a deposit, they must explain why in writing to the person who paid it within the time set by the Act, or repay it.

Sources

The primary sources behind this guide. Where the law and a summary disagree, the law is what counts.

This article is general information, not legal advice. It covers England only and reflects the position as at October 2026. For the current rules, see the GOV.UK Tenant Fees Act guidance for tenants, and consider free advice from Shelter or Citizens Advice for your own situation.

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