!!Can a Holding Deposit be refunded??

Lncp2020

Hi MoneySavings community,
Hope you're all well and safe x
I have a question which is related to what a landlord can do with a house deposit if the tenant withdraws from the application in less than 24hrs? I approached the landlord via Openrent website, paid a holding deposit and in less than 24hrs I decided not to go ahead. Now the deposit is in the landlord's hands and he is refusing to return even just hald of it.  Both OpenRent website and landlord have quoted the Tenants act 2019 where it says that the landlord can keep the holding deposit if it's the tenant that withdraws from the renting the property however it seems quite unfair to me that there is no time limit also when, especially in London, potential tenants are put under pressure by landlords/agents to secure a property because as they put it "there is always one person who is interested in the property!". Also the landlord said that the deposit is non-refundable which is something that I haven't been able to find on Openrent website. While I recognise I should have taken my time no matter the rush and pressure, is it really the case that there is no protection for tenants in this kind of situations? Now this landlord has earned 300£ (equal to one week rent) and he's still got 6 days to rent it and earn on top of my deposit! Any advice/help would be really appreciated. Many thanks .x

blue_max_3

Pulling out cost me £800 plus via an agent. So I think you may be out of luck. 

Slithery

Lncp2020 said:

Both OpenRent website and landlord have quoted the Tenants act 2019 where it says that the landlord can keep the holding deposit if it's the tenant that withdraws from the renting the property

They are correct.

however it seems quite unfair to me

Who told you that life was fair?

While I recognise I should have taken my time no matter the rush and pressure, is it really the case that there is no protection for tenants in this kind of situations?

Correct. If you weren't sure about the property then you shouldn't have paid the deposit.

greatcrested

Why unfair?

The principle behind a holding deposit is that a tenant says they want the propety and the LL reserves it for them, stops advertising, and turns away other potential tenants.

OK, perhaps an immediate change of heart by the tenant (same day? next day? within 3 days....?) minimises the LL's loss, but where is the line drawn?

The loss to the LL cannot be quantified by law, so any fair 'cooling off period' is equally hard to specify. It could be that half an hour after you paid your holding deposit the LL turned away the perfect tenant - and then had to wait 10 days for another one to apply after you withdraw. Who knows?

 

Lncp2020

Thank you for your replies, however I would like to add the fact that since yesterday and confirmed today the property that I was looking to rent is not appearing on the website anymore and I get re-directed to a different property if clicking on the link in the e-mail of the deposit confirmation payment. Hope this shows that tenants need more protection.

AdrianC

You think you need more protection from changing your mind? Why?

You committed contractually to taking a property. You then changed your mind. That's precisely what a holding deposit is intended to dissuade.

Next time, don't commit unless you really mean it.