Tenant Fees Act 2019
From 1st June 2019, a Holding Deposit, capped at no more than one week's rent, will be required to demonstrate a commitment to rent a property, whilst referencing checks take place. Where a Tenant later enters into a tenancy agreement, the Holding Deposit will become part of the first month's rent.
The Holding Deposit will be refunded where a Landlord decides not to rent the property or an agreement is not reached before the 'deadline for agreement' (and the Tenant is not at fault).
The Holding Deposit will not be refunded if a Prospective Tenant provides false or misleading information which reasonably affects our decision to let the property to them (ie calls into question their suitability as a Tenant, this can include their behaviour in providing false or misleading information), they fail a Right to Rent Check, withdraw from the proposed agreement (decide not to let) or fail to take all reasonable steps to enter an agreement (ie responding to reasonable requests for information required to progress the agreement) when the Landlord and/or Agent has done so. Should we wish to retain the Holding Deposit, we shall set out in writing the reason for this within 7 days of deciding not to enter the agreement or the 'deadline for agreement' (ie usually 15 days after a Holding Deposit has been received (unless otherwise agreed in writing).