Holding Deposit Refund

Housebuy12345

The holding deposit you won’t be able to get legally back, you agreed to the terms of the contract (which were the same when you viewed the property) and you are just getting cold feet now.

So Tuesday just email/call the letter agent and say you don’t wish to go through with the letting, sorry for the inconvenience and can you have your holding fee back.

They will most likely say no.

Housebuy12345

Look, it’s just learning money for you. Although a weeks rent is a lot of money, you will be saving £4K a year if you go for the cheaper place.

Ps my rent is £580pm all inclusive, I rent a room I. A house and it’s kinda pricey. London is expensive.

need_an_answer

how much holding deposit did you pay?

A set figure or 1 weeks rent?

under the new rules after 1st june the term holding deposit is used,I wonder if you are using an agent who has adopted new practice?

parkrunner

What's the point of having a budget and ignoring it?

Housebuy12345

https://www.which.co.uk/consumer-rights/advice/do-i-have-to-pay-a-holding-deposit

bitolas

Yes will do that and let them know as soon I can about my will of withdraw.

It was "only" one week deposit, and I know I will recover it choosing the other option.

Where I can find the new rules coming on the 1st June?

And yes we wanted to respect our budget, but considering the qualities of the property and after few weeks on viewings we decide to increase it, we thought also that meeting the landlord asking price we would get some of our requirements accepted, but nothing happened from other side. Nothing, really nothing, and behaviour during all process was doubtly. We also understand was premeditated to put the holding deposit. Just trying here to understand my rights without compromising anyone.

Many thanks all for answers and clarifications.

Housebuy12345

New rules only surround fees. A holding deposit isn’t a fee.

anselld

Housebuy12345 wrote: »

New rules only surround fees. A holding deposit isn’t a fee.

The new rules also limit holding deposit to a weeks rent, but that is irrelevant as it is not yet 1 June.

Housebuy12345

^still doesn’t stop the letting agent from keeping the deposit

need_an_answer

Housebuy12345 wrote: »

New rules only surround fees. A holding deposit isn’t a fee.

But if the agent has adopted the new rule early then they may request a holding deposit from the prospective tenant of 1 weeks rent.

This would be refundable to the prospective tenant if the LL were not to choose them for the property.

Admittedly if the tenant were to pull out they would face losing the fee but it is unclear from the OP whether the agent has adopted the new fee structure.

I am aware that it is not fully implemented until 1st june however some agents have already swapped to the new fee structure.

OP Perhaps you could confirm if the agent you are using has adopted the new fee structure or not.

I haven't fully understood the position over the cleaner but again under the new rules it is not something the tenant can be charged for directly.

A tenant will only face charges for late payments or lost keys.



4. Cap on Holding Deposits

Likewise, holding deposits will be limited to one week’s rent.

This is a big change, since most holding deposits are currently much more than a week’s rent.



5. New Rules on Holding Deposits

The Act includes new rules about how holding deposits must be treated.

The holding deposit must be returned to the tenant: either in payment back to the tenant, or being put towards the first rental payment, or the security deposit.

There are some exceptions. In these cases the landlord can keep the holding deposits:

· The tenant withdraws

· The tenant doesn’t take all reasonable steps to enter the tenancy

· The tenant fails a right to rent check

· The tenant provides misleading information which materially affects their suitability to rent the property

If that last one sounds a little vague to you, then you’re not alone. You can read the exact wording here in paragraph 9 of the Tenant Fees Act.