The short answer
In England a holding deposit to reserve a home can be no more than one week’s rent: up to £213 for a room at £927 a month. You get it back within 7 days unless you withdraw, fail a Right to Rent check, give misleading information or stop responding, and a landlord who keeps it must tell you why in writing. Fees for viewings, referencing or admin are not allowed.
- Maximum
- 1 week’s rent
- Deadline to agree
- 15 days
- Refund within
- 7 days
On this page10 sections
What a holding deposit is
A holding deposit is a refundable payment that reserves a home while the landlord runs pre-tenancy checks such as references and Right to Rent. It is one of the few payments the Tenant Fees Act 2019 (opens in a new tab) allows, and it comes with strict rules:
- It can be no more than one week’s rent.
- The cap is per tenancy, not per person: two people renting together pay one holding deposit between them.
- A landlord can take only one holding deposit at a time for the same home.
- A landlord does not have to take one at all.
- It does not have to go into a deposit protection scheme. If you become the tenant and it becomes part of your deposit, that deposit must be protected.
How much it can be
Government guidance works out the weekly rent as the monthly rent × 12 ÷ 52. One week’s rent is therefore a little less than a quarter of a month’s rent.
| Monthly rent | Weekly rent | Max holding deposit (1 week) | Max tenancy deposit (5 weeks) |
|---|---|---|---|
| £650 | £150 | £150 | £750 |
| £927 | £213.92 | £213 | £1,069 |
| £1,645 | £379.62 | £379 | £1,898 |
The 15-day deadline
Once a landlord takes your holding deposit, the standard deadline for agreeing the tenancy is 15 calendar days. You and the landlord can agree a longer or shorter deadline in writing. If the deadline passes without an agreement, and it isn’t your fault, the holding deposit must be returned.
When you get it back, and when you might not
The landlord must return the holding deposit within 7 days. If you sign the tenancy, it can go towards your first month’s rent or your tenancy deposit, but only if you agree.
A landlord can keep it only if you:
- give false or misleading information that affects whether you are a suitable tenant
- change your mind and withdraw from renting the home
- do not respond to reasonable requests for information, documents or action
- fail a Right to Rent check
Small mistakes don’t count
If the incorrect information doesn’t affect your suitability, such as a misspelling or a missing previous address, the landlord must still return the holding deposit. If they keep it, they must tell you why in writing within 7 days.
What else a landlord can, and can’t, charge
The Tenant Fees Act lists every payment a landlord or letting agent can ask for. Anything not on this list is a prohibited payment:
| Payment | The limit |
|---|---|
| Rent | Only once the tenancy agreement is signed, and no more than the advertised rent. |
| Tenancy deposit | Up to 5 weeks’ rent (annual rent under £50,000) or 6 weeks’ (£50,000 to £100,000). Must be protected. |
| Holding deposit | Up to 1 week’s rent, refundable under the rules above. |
| Changing the tenancy at your request | Up to £50, or more only if the landlord shows the higher cost is reasonable. |
| Leaving without the required notice | No more than the rent due until the notice period would have ended. |
| Utilities, internet, phone, council tax, TV licence | Only what is agreed in the tenancy agreement. |
| Late rent | Only when it is at least 2 weeks overdue, at up to 3% a year above the Bank of England base rate. |
| Lost key or security device | The reasonable cost, backed by written evidence. |
That rules out fees for viewings, referencing, admin or contract preparation. A landlord also cannot make you take out insurance, a loan or a service, such as a professional guarantor or an inventory service, as a condition of the tenancy, although you can choose one yourself.
Rent in advance and rental bidding: the rules since 1 May 2026
The Renters’ Rights Act added two protections that matter at the reservation stage:
- No rent before you sign. A landlord or agent must not ask for, encourage or accept rent before you both sign the tenancy agreement. After signing, they can ask for at most one month’s rent before the tenancy starts (28 days’ rent if you pay weekly).
- No bidding wars. A written advert must state one specific rent, not a range, and the landlord cannot ask or encourage you to offer more, or accept an offer above it. Councils can fine landlords up to £7,000 for rental bidding.
If you’ve been asked for a fee that isn’t allowed
Say no, and keep a record
Tell the landlord or agent the fee is not allowed. Keep emails, messages and receipts.
Ask for your money back
If you have already paid, ask for a refund in writing and keep their reply.
Report it
Your local council can investigate and fine a landlord up to £5,000 for a first breach, and up to £30,000 or prosecution for a repeat within 5 years. You can also apply to the First-tier Tribunal to order a refund. Letting agents must belong to a redress scheme, such as The Property Ombudsman or Property Redress.
Shelter and Citizens Advice give free advice if you are unsure.
How holding deposits work at GladStay
- Booking a viewing is free, and it does not reserve the room.
- To reserve, you pay a holding deposit capped at one week’s rent and complete the application form.
- The holding deposit counts towards your move-in balance.
- It may be retained if you withdraw, fail Right to Rent checks or provide misleading information. We follow the Tenant Fees Act.
- Rent is due only once the tenancy agreement has been fully signed, and there are no extra monthly fees.
See the costs before you apply
Each listing shows the monthly rent and the cost breakdown before you send a request.
Questions and answers
How much can a holding deposit be?
No more than one week’s rent. Government guidance calculates the weekly rent as the monthly rent multiplied by 12 and divided by 52.
How long can a landlord keep my holding deposit?
The standard deadline for agreeing the tenancy is 15 calendar days, unless you agree a different deadline in writing. When it has to be returned, the landlord must do so within 7 days.
Can I get my holding deposit back if I change my mind?
Usually not. Withdrawing from the tenancy is one of the reasons a landlord can keep it, and they must explain why in writing within 7 days.
Does a holding deposit have to be protected in a scheme?
No. It only needs protecting once you become the tenant and it becomes part of your tenancy deposit.
Can a landlord charge a referencing or admin fee?
No. Referencing, admin and viewing fees are not on the list of payments the Tenant Fees Act allows, so they are prohibited.
Can I be asked to pay rent before signing?
No. Since 1 May 2026 a landlord cannot ask for or accept rent before the tenancy agreement is signed. After signing, they can ask for at most one month’s rent in advance.
Is the holding deposit per person?
No. The one-week cap is per tenancy, so people renting together pay one holding deposit between them.
Sources
Checked against these official sources on 25 October 2026:
- Tenant Fees Act 2019: guidance for tenantsGOV.UK (opens in a new tab)
- Fees you can charge as part of a tenancyGOV.UK (opens in a new tab)
- Assured periodic tenancies: rent in advance and depositsGOV.UK (opens in a new tab)
- Assured periodic tenancies: rental biddingGOV.UK (opens in a new tab)
- Tenant Fees Act 2019legislation.gov.uk (opens in a new tab)
About this guide
Written by the GladStay team: 1,500+ tenants helped since 2013. We check our guides against the official sources above and update them when the rules change. This is general information for England, not legal advice: for your own situation, use the official sources or get independent advice.
Reserve with confidence
A holding deposit capped at one week’s rent that counts towards your move-in balance, and no extra monthly fees.