Tenancy/security deposit
can be paid to a landlord and is used in the case of;
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
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
Holding Deposits must be repaied if
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.
If you signed a contract before the 1st of June 2019 you may have paid a fees (which is not refundable) when signing up to a property. Common fees included;
You can’t be charged fees to;
If you signed a contract from the 1st of June 2019 you can not be charged fees for
If you have signed a contract before the 1st of June 2019 your contract should outline what you can be charged for and how much. If your contract extends beyond the 31st of May 2020 your Landlord will only be able to charge fees as per the new rules after the 31st of May 2020.
If you have signed a contract after the 1st of June 2019 you can be charged for;
Contracts signed from the 1st of June 2019 cannot disguise fees as rent by having a period in where the effective rent is higher than normal. For instance if you pay monthly you can't have your 1st month being £200 more than any other month's payment.
If the period of the contract is a fixed single period (such as 44 week period) and the rent is described as a fixed figured for that entire period, then the payment dates are not consequential. Advance rent (prior to moving in) could be included in the payment dates specified but the total cost should be as advertised. Some providers may advertise an effective weekly or monthly rent but the contract should outline the total cost for the period.
If the contract has several periods within the contract length (e.g. monthly/weekly) and the rent in the contract is described as being monthly or weekly then those payments cannot simply go up and down period to period- you may find provision for increasing rent on an annual basis.
“The rule of the common law is, that where a party sustains a loss by reason of a breach of contract, he is, so far as money can do it, to be placed in the same situation, with respect to damages, as if the contract had been performed.” Robinson v Harman
If you fail to pay for damages the landlord or agent may deduct those damages from the deposit or seek legal action.
Damages in this context does not necessarily mean physical damage. If for instance you fail to pay your rent, those are damages that the landlord could seek to recover that loss.
Landlords or agents can stipulate that you must get particular services such as possessions insurance, but in any contracts signed from the 1st of June 2019, they can’t force you into a contract with a specific company. It is likely that Landlords or agents who have deals with service providers such as insurers will simply include the cost of the rent.
If you are liable to pay bills you have the right to change providers if you wish.
Remember that if you have signed a contract with joint liability, all tenants may be liable for deductions in some cases, especially where damages have occurred in communal areas and there is no admission of liability from the individual(s) who caused the damage.
Joint contracts normally make everyone who signs the contract responsible for the whole rent on the house if a housemate owes rent at the end of a tenancy, their deposit might not be enough to cover the arrears. In this situation, landlords could make deductions from deposits paid by other joint tenants. When this happens, it is possible for the joint tenants to take legal action against the person who has caused the problem.
If you have an assured shorthold tenancy your landlord has 30 days from when you pay your deposit to;
If you are unsure if it has been protected you can ask the landlord what scheme they have used or check the 3 tenancy deposit scheme providers websites:
You'll need to supply your postcode, tenancy start date, deposit amount and surname.
We recommend speaking to shelter as well as the students’ union if you are having issues with deposits.
There is helpful information on the shelter website for;
During the tenancy, there are some things you can do to help increase your chances of getting your deposit back at the end of the tenancy.
A guarantor takes on all the legal obligations of the tenant in the contract but essentially gets nothing from it. Most students have no or limited credit history. Guarantors however are likely to have borrowed and repaid or have a mortgage and therefore would be considered to be more financially secure / economically active. This is why some agencies and landlords require guarantors.
Your guarantor must sign to say that they would cover the cost of the rent if you default on your payments. This must be in signed writing. Credit checks on your guarantor will usually take place. If your guarantors are overseas credit checks can be difficult.
If you are signing a joint tenancy you have joint liability for the entire property. Therefore your guarantor is taking on the risk of owing the total rent for while property. If each tenant’s rent is £400 a month, that £4,000 for a 10 month of the contract per person, if you are in a five bedroom house that is a total liability of £20,000.
Page last reviewed: 11/06/2019
Next review due: 31/08/2020