can be paid to a landlord and is used in the case of;
- Rent arrears
- Unpaid utilities
Security deposits can be no more than the equivalent of 5 weeks rent (or 6 weeks in cases where the contract exceeds £50k per year which can occur in joint tenancy of larger properties)
Holding deposits are limited to 1 weeks rent and are intended to help all parties craft their agreement in an expected timeframeof about 15 days for a contract to be signed.
You may lose the holding deposit if you
- provide misleading information,
- withdraw from negotiations,
- fail a right to rent checks (which is run for immigration purposes),
- or you are too slow at responding in a reasonable time i.e. landlord tries their best to get the information needed but you fail to provide it within the 15 days
Holding Deposits must be repaied if
- the agreement is concluded before the deadline,
- the landlord withdraws before the deadline,
- or there is no tenancy agreement before the deadline.
Holding deposits must be returned within 15 days from and including receipt of the deposit.
You and the Landlord or Agent can agree a different date if you need to extend talks.
‘Mutant Deposits’ are permissible, by which after signing a contract the holding deposit could be used towards the tenancy deposit or the rent if you agree.
Deposits for Pets
If you have signed a contract after the 1st of June 2019, you cannot be charged an additional deposit for having a pet. However the landlord might not agree to let you have one or may offer a higher rate of rent if you wish to take on a pet.
If you have signed a contract before the 1st of June 2019, you can be charged an additional deposit for having a pet- after the 31st of May 2020 you cannot be charged an additional deposit for having a pet. However the landlord might not agree to let you have one or may offer a higher rate of rent if you wish to take on a pet.