What to do before paying a holding deposit.
A holding deposit can reserve a rental property while checks are carried out, but you should not send one until you have checked the property, advertiser, payment details, and refund terms.
What is a holding deposit?
A holding deposit is money you may be asked to pay to reserve a rental property while the landlord or letting agent carries out checks, such as references, income checks, or right to rent checks.
It is different from a tenancy deposit. A tenancy deposit is usually paid to cover possible damage, rent arrears, or other costs during the tenancy. A holding deposit is paid before the tenancy is agreed to show that you are serious about renting the property.
In England, official guidance says the maximum holding deposit is one week’s rent, and the default deadline for agreeing the tenancy is 15 days unless a different deadline is agreed in writing.
How much should a holding deposit be?
In England, a holding deposit should not be more than one week’s rent.
A simple way to estimate one week’s rent is:
Example: £1,000 per month × 12 ÷ 52 = about £230.77 maximum holding deposit.
Be cautious if someone asks for more than one week’s rent as a holding deposit, asks for a separate “reservation fee”, or is unclear about what the payment is for.
Holding deposit calculator
Enter the monthly rent to estimate one week’s rent.
Checks to do before paying
When should a holding deposit be refunded?
You should usually get your holding deposit back if the landlord or agent decides not to rent the property to you. However, there are situations where they may try to keep it, such as if you decide not to go ahead, provide false or misleading information, or fail certain checks.
Before paying, ask for the refund rules in writing. You should know:
- What happens if the landlord changes their mind.
- What happens if you change your mind.
- What happens if references or checks fail.
- Whether the holding deposit will be refunded or put towards rent or the tenancy deposit.
- What the deadline is for agreeing the tenancy.
If the advertiser says “just send it and we’ll sort the paperwork later”, ask for clear written terms before paying.
Holding deposit red flags
- You are asked to pay before viewing the property.
- The holding deposit is more than one week’s rent.
- The advertiser will not give the full property address.
- You do not know the full name of the landlord, agent, or company.
- You are told to pay urgently or the property will be gone.
- The payment purpose is unclear.
- No receipt or written confirmation is offered.
- The payment method is unusual or hard to trace.
- The advertiser says they are abroad and keys will be sent after payment.
- The rent is much cheaper than similar properties nearby.
A holding deposit is not just a casual payment. It should be tied to a clear property, clear terms, and a clear person or company receiving the money.
This guide provides general information for renters and is not legal, financial, or professional advice. Rental rules can vary depending on location and circumstances.
Useful next steps
Use these tools before paying, signing, or sharing personal documents.
Rental scam checker
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Use checker →Before you pay checklist
Tick through the key checks before paying a deposit, rent, or holding fee.
View checklist →Questions to ask
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