Deposits · England · 2026

A straightforward guide to deposits.

A holding deposit reserves a property during checks; a tenancy deposit provides security during the tenancy. They are not fees or rent. This summary, checked against GOV.UK guidance on 13 October 2026, is not the property-specific prescribed information or legal advice.

Holding deposit and reservation terms

Before referencing begins, we will explain the proposed tenancy and ask you to agree written holding-deposit terms and pay a refundable holding deposit of no more than one week’s rent. This is a holding deposit, not a non-refundable application or holding fee. For monthly rent, one week’s rent is calculated as monthly rent × 12 ÷ 52. For a joint tenancy, the cap applies to the property as a whole—not a full week of the property’s rent charged to each applicant. We will take the property off the market while we process your reserved application; this does not guarantee that the application will be accepted. The usual deadline for entering into the tenancy agreement is 15 days after the holding deposit is received. A different deadline can be agreed in writing. This is a deadline for reaching the agreement, not an automatic deadline to move in or an automatic right to keep your deposit.

When your holding deposit is returned

The holding deposit will normally be refunded if the tenancy is agreed, the landlord decides not to proceed, or the agreement deadline passes without a tenancy being agreed. With your consent, it can instead be applied towards the tenancy deposit or first rent payment once the tenancy agreement has been signed. It can only be retained in the limited circumstances allowed by the Tenant Fees Act 2019, including withdrawal from the application, a failed Right to Rent check where the statutory conditions for retention are met, materially false or misleading information affecting suitability, or failure to take all reasonable steps to enter into the agreement where the landlord or agent has taken all reasonable steps themselves. Where a refund is due, it must be made within seven days of the relevant statutory trigger, such as entering into the tenancy agreement, the landlord deciding not to proceed, or the agreed deadline passing. If the deposit is lawfully retained, the reasons must be given in writing within seven days of the decision not to grant the tenancy or the agreement deadline expiring, as applicable. Failing an affordability or credit check is not, by itself, a reason to retain a holding deposit if the information supplied was accurate.

GOV.UK: holding deposits and permitted tenant payments

Tenancy deposit and agreed payments

Once Tenant Link has confirmed that references have passed and been accepted, the remaining tenancy deposit is normally due within 24 hours under our application process. This is an agency payment timetable, not a separate statutory deadline. We will confirm the amount and explain any holding-deposit refund or agreed credit. For tenancies covered by the Tenant Fees Act, the tenancy deposit is capped at five weeks’ rent where annual rent is below £50,000, or six weeks’ rent where annual rent is £50,000 or more. For an assured tenancy, the deposit must be protected in a government-approved scheme and the prescribed information provided within 30 days of receipt. Rent is only requested in accordance with the signing and advance-payment rules above. If you need to discuss an agreed payment deadline, contact us promptly rather than assuming a deposit will automatically be forfeited.

Deposit guidance GOV.UK: tenancy deposit protection

Protection and prescribed information

For an assured tenancy, within 30 days of receiving the tenancy deposit the landlord or agent must protect it in a government-approved scheme and give the tenant the required prescribed information. This includes the property address, deposit amount, scheme and dispute-resolution details, landlord or agent contact details, how to apply for the deposit’s return, and when deductions may be made. Information must also be supplied to anyone who paid the deposit on the tenant’s behalf. A holding deposit does not itself need tenancy-deposit protection while the application is being considered. If it is applied towards the tenancy deposit with your consent, the tenancy-deposit protection requirements apply. Your tenancy documents should explain how the deposit is handled and returned. The deposit must normally be returned within 10 days of both parties agreeing how much will be repaid. If deductions are disputed, the scheme’s dispute-resolution process may help; the disputed deposit remains protected until the issue is settled.

Tenancy deposit protection guidance

Check your paperwork before proceeding

This website summary does not update or certify any tenancy agreement, guarantee, reservation terms or referencing form. Tenant Link should obtain professional review of its contracts and operating procedures for the 2026 rules, including existing guarantees signed before 1 May 2026, payment requests, holding-deposit refunds and fair affordability assessments. Applicants and guarantors should seek independent advice if a document conflicts with this guidance.

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