Holding deposit terms and conditions

canadian_abroad

Hi there - I'm a Canadian abroad here in the UK and in desperate need of advice. I would like to get some more information on my rights in respect of a holding deposit. I agreed to rent a property on 17 June 2010 and my holding deposit of £450 was received by the letting agent on 22 June 2010. No terms and conditions were provided along with the holding deposit and I did not sign any kind of agreement. At the time that the holding deposit was paid I was unaware that it was non-refundable if I decided to withdraw. I was referenced immediately and the landlord approved my references. I inquired about the property on Friday 25 June 2010 and was informed that I would receive the lease agreement on Monday.
I called the letting agent on 25 June 2010 and noted that there was a possibility that I may have to leave the property after 6 months (within the terms of the proposed lease agreement). The letting agent advised me that I should not inform the landlord and told me to think about it over the weekend. On Monday 28 June 2010 I was told that the letting agent had discussed the possibility with the landlord, who was fine with the potential 6 month term. I then informed them that there was a possibility I may need to vacate the property by December 2010, which would not work out with the current tenancy agreement. The letting agent suggested that I find out from my current landlord whether or not I could stay in my property.

On Tuesday 29 June 2010 I informed them that I would not likely be vacating the property in December 2010 and that we would go ahead with the proposed tenancy agreement. This morning, Wednesday 30 June 2010, I noted that the property was being marketed as available on both the letting agent's website and Rightmove (from which it had previously been removed). I called the letting manager, who said that they had to cover their own backs because they thought that I would be withdrawing from the tenancy agreement. She did not give me a straight answer in respect of whether they could actually do that or not.

I don't have a very good feeling about this apartment or the letting agency now. I think that the best option would be for me to withdraw, but in that case my holding deposit is considered "non-refundable". Does the fact that I did not see, nor have I ever seen, written terms and conditions of the holding deposit in any way entitle me to the holding deposit? Is the holding deposit penalty limited to any sort of cap (i.e. agent's fees?) I would really appreciate any advice that would be provided in this respect.