Help! Holding deposit

Ab9481

I recently put down a holding deposit with a private landlord (£275) for a £550pcm double room. The landlord agreed that I could pay my first months rent with universal credit. I needed some evidence that I was moving into the property so the landlord wrote a handwritten letter saying that I had paid £275 to hold the room until I moved in on the 1st of February. Because of time constraints of my next benefit payment (1st of February) the jobcentre had already processed my universal credit payment which didn’t include the housing benefit. This meant that I was unable to pay the first months rent. I contacted the landlord to tell him that I wasn’t able to move into the property on the 1st of February and he’s now saying that the £275 is non refundable (he never stated it was non refundable beforehand nor did he write it down).

So now I’m at a loss. He’s saying it covers all loses however I only paid the deposit on the 25th January! What can I do? Help

Comms69

Holding deposits are typically non refundable if the tenant withdraws

Ab9481

But we had agreed that if I wasn’t able to get the housing benefit in time, I would get the money back.

I don’t see how it’s fair that he gets to keep £275 for only holding the place for THREE days. On top of that, he didn’t even remove the ad from spare room

babyblade41

Ab9481 wrote: »

But we had agreed that if I wasn’t able to get the housing benefit in time, I would get the money back.

I don’t see how it’s fair that he gets to keep £275 for only holding the place for THREE days. On top of that, he didn’t even remove the ad from spare room

If you have that it's returnable in writing I'm not sure you could enforce it ... I think you will probably have to cut your losses unfortunately

Comms69

Ab9481 wrote: »

But we had agreed that if I wasn’t able to get the housing benefit in time, I would get the money back.

I don’t see how it’s fair that he gets to keep £275 for only holding the place for THREE days. On top of that, he didn’t even remove the ad from spare room

Why bother taking a deposit if it’s just refundable?...

pmlindyloo

Ab9481 wrote: »

I recently put down a holding deposit with a private landlord (£275) for a £550pcm double room. The landlord agreed that I could pay my first months rent with universal credit. I needed some evidence that I was moving into the property so the landlord wrote a handwritten letter saying that I had paid £275 to hold the room until I moved in on the 1st of February. Because of time constraints of my next benefit payment (1st of February) the jobcentre had already processed my universal credit payment which didn’t include the housing benefit. This meant that I was unable to pay the first months rent. I contacted the landlord to tell him that I wasn’t able to move into the property on the 1st of February and he’s now saying that the £275 is non refundable (he never stated it was non refundable beforehand nor did he write it down).

So now I’m at a loss. He’s saying it covers all loses however I only paid the deposit on the 25th January! What can I do? Help

I'm not sure what your potential landlord wrote for Universal Credit but he needed to make it clear that you either were going to start a tenancy on the 1 February or provide a lodger's agreement (whichever is appropriate) stating the start date. This is inform UC that you have a rent liability.

In any case you need to write a note in your UC journal explaining that you are going to rent this place and ask for an advance payment for this change of circumstances.

https://www.citizensadvice.org.uk/benefits/universal-credit/claiming/get-advance-payment/

Advance payments are issued within a couple of days, even the same day if you stress the emergency situation.

The only possible difficulty is if the letter didn't confirm the tenancy state date/lodger's agreement start and they will ask you to get this.

So, write in your journal now and have a chat with your potential landlord about what you have done.

Hopefully both UC and your potential landlord will be helpful. Since the LL may have not already re advertised then you could be OK. If the LL does get someone in to take your place very soon then I really do not see why, if he was a nice human being, he wouldn't return your holding deposit.

Good luck!

https://www.citizensadvice.org.uk/benefits/universal-credit/claiming/get-advance-payment/

Honeylife

Ab9481 wrote: »

I recently put down a holding deposit with a private landlord (£275) for a £550pcm double room. The landlord agreed that I could pay my first months rent with universal credit. I needed some evidence that I was moving into the property so the landlord wrote a handwritten letter saying that I had paid £275 to hold the room until I moved in on the 1st of February. Because of time constraints of my next benefit payment (1st of February) the jobcentre had already processed my universal credit payment which didn’t include the housing benefit. This meant that I was unable to pay the first months rent. I contacted the landlord to tell him that I wasn’t able to move into the property on the 1st of February and he’s now saying that the £275 is non refundable (he never stated it was non refundable beforehand nor did he write it down).

So now I’m at a loss. He’s saying it covers all loses however I only paid the deposit on the 25th January! What can I do? Help

1. A Holding Deposit is NOT an actual Refundable Deposit. Your prospective Landlord either did not make that clear or you did not understand the difference. A Holding fee is asked for so that you don't mess the Landlord around, eg and you may have said "yes yes yes I will take it", but then disappear and the Landlord has to start the interviewing and viewing process again. A time-consuming and yes costly process.

2. A Holding fee is usually non-refundable unless your Landlord feels you pulling out of the arrangement was not entirely your fault eg you went skiing and broke your back, but even then he has to consider any voids. If you changed your mind or took up a job offer in Timbucktoo then no you won't get the Holding fee back. Your situation is slightly different because of the Universal Credit but that's the risk of Holding fee.

3. Landlords don't usually take the ad down from Spareroom until the actual Licence Agreement is signed (I dont, having been stung twice!)

4. For a £550pcm room I have to say the Landlord asked for a heck of a lot for the Holding fee. I never ask for more than £100 Holding fee.

5. As this is a matter of days since this occured, I think you should try and appeal to the Landlords better nature and explain that the £275 was all you had and he will get his rent. Then get onto the Universal Payment people pronto about an Advance Payment - they have the proof in the letter he wrote. You never know. Be calmly persistent and firmly tenacious, there is really no reason why you should loose this room and the £275.

6. Good luck

Ab9481

1. A Holding Deposit is NOT an actual Refundable Deposit. Your prospective Landlord either did not make that clear or you did not understand the difference. A Holding fee is asked for so that you don't mess the Landlord around, eg and you may have said "yes yes yes I will take it", but then disappear and the Landlord has to start the interviewing and viewing process again. A time-consuming and yes costly process.

He understood the situation. He knew that I may or may not move into the property due to the UC situation.

2. A Holding fee is usually non-refundable unless your Landlord feels you pulling out of the arrangement was not entirely your fault eg you went skiing and broke your back, but even then he has to consider any voids. If you changed your mind or took up a job offer in Timbucktoo then no you won't get the Holding fee back. Your situation is slightly different because of the Universal Credit but that's the risk of Holding fee.

3. Landlords don't usually take the ad down from Spareroom until the actual Licence Agreement is signed (I dont, having been stung twice!)

4. For a £550pcm room I have to say the Landlord asked for a heck of a lot for the Holding fee. I never ask for more than £100 Holding fee.

I’ve gone back to check and the £275 is what was advertised as the deposit which he is now calling the ‘holding fee’

5. As this is a matter of days since this occured, I think you should try and appeal to the Landlords better nature and explain that the £275 was all you had and he will get his rent. Then get onto the Universal Payment people pronto about an Advance Payment - they have the proof in the letter he wrote. You never know. Be calmly persistent and firmly tenacious, there is really no reason why you should loose this room and the £275.

He’s blocked me. I was texting him each day asking for the money back because that was all I had and he has now blocked my WhatsApp and number

6. Good luck

Honeylife

Ab9481 wrote: »

I’ve gone back to check and the £275 is what was advertised as the deposit which he is now calling the ‘holding fee’

5. As this is a matter of days since this occured, I think you should try and appeal to the Landlords better nature and explain that the £275 was all you had and he will get his rent. Then get onto the Universal Payment people pronto about an Advance Payment - they have the proof in the letter he wrote. You never know. Be calmly persistent and firmly tenacious, there is really no reason why you should loose this room and the £275.

He’s blocked me. I was texting him each day asking for the money back because that was all I had and he has now blocked my WhatsApp and number

I am genuinely sorry to hear that. I take it you have no address for him? How did you pay him? Do you have a receipt for the (very high) Holding fee? This is the second time I have come across a landlord asking for a high "Holdng fee" and disappearing with it! Quite worrying. Perhaps the CAB can be of some assistance. It does sound like you have unfortunately been scammed.

You said the room was advertised on Spareroom. If you get in touch with Spareroom (email them) they may be able to ban this unscrupulous landlord from their site, or warn him and warn others! I have found them very responsive to my queries and suggestions. Further, you definitely should point out to them that you are a vulnerable client (on Universal Credit). Spareroom will not be able to get your money back but this may stop this misrepresentation (and possible theft) the purpose of a holding fee being repeated by him and others.

Comms69

Ab9481 wrote: »

1. A Holding Deposit is NOT an actual Refundable Deposit. Your prospective Landlord either did not make that clear or you did not understand the difference. A Holding fee is asked for so that you don't mess the Landlord around, eg and you may have said "yes yes yes I will take it", but then disappear and the Landlord has to start the interviewing and viewing process again. A time-consuming and yes costly process.

He understood the situation. He knew that I may or may not move into the property due to the UC situation. - You still haven't answered though; if you knew and he knew that you may or may not take the property; then the deposit was meaningless.

2. A Holding fee is usually non-refundable unless your Landlord feels you pulling out of the arrangement was not entirely your fault eg you went skiing and broke your back, but even then he has to consider any voids. If you changed your mind or took up a job offer in Timbucktoo then no you won't get the Holding fee back. Your situation is slightly different because of the Universal Credit but that's the risk of Holding fee.

3. Landlords don't usually take the ad down from Spareroom until the actual Licence Agreement is signed (I dont, having been stung twice!)

4. For a £550pcm room I have to say the Landlord asked for a heck of a lot for the Holding fee. I never ask for more than £100 Holding fee.

I’ve gone back to check and the £275 is what was advertised as the deposit which he is now calling the ‘holding fee’ - Irrelevant

5. As this is a matter of days since this occured, I think you should try and appeal to the Landlords better nature and explain that the £275 was all you had and he will get his rent. Then get onto the Universal Payment people pronto about an Advance Payment - they have the proof in the letter he wrote. You never know. Be calmly persistent and firmly tenacious, there is really no reason why you should loose this room and the £275.

He’s blocked me. I was texting him each day asking for the money back because that was all I had and he has now blocked my WhatsApp and number - I'm not surprised. That's not professional; you're harassing him.

6. Good luck

It's an expensive lesson, but to be honest you probably wont get the money back - aside from anything else I don't think you have a legal case; but even if you disagree with that, you need an address to take him to court

Comms69

Honeylife wrote: »

I am genuinely sorry to hear that. I take it you have no address for him? How did you pay him? Do you have a receipt for the (very high) Holding fee? This is the second time I have come across a landlord asking for a high "Holdng fee" and disappearing with it! Quite worrying. Perhaps the CAB can be of some assistance. It does sound like you have unfortunately been scammed.

Oh please do elaborate how the OP has been scammed...