Under the Tenant Fees Act 2019, a holding deposit in England is capped at one week's rent, and by default must be dealt with within the 15-day 'deadline for agreement' unless a different deadline is agreed in writing. If the tenancy goes ahead, the money is credited to the first payment or the tenancy deposit. If it does not, the Act dictates who keeps what: the tenant gets it back unless they withdraw, fail a Right to Rent check, or provide false or misleading information that materially affects your decision.
The LetSafe Holding Deposit Agreement & Receipt (LS-E-052, £9) puts all of that in one signed page: the amount and the cap check, the agreed deadline, the retention grounds in the Act's own terms, and a receipt for the payment. It is the difference between a documented decision and a First-tier Tribunal claim for a prohibited payment.
What the Tenant Fees Act 2019 actually allows
- Cap: no more than one week's rent (annual rent ÷ 52)
- One at a time: you cannot hold competing holding deposits on the same property
- Deadline for agreement: 15 days by default, extendable only by written agreement
- Refund: within 7 days of the tenancy being entered, the landlord pulling out, or the deadline passing
- Retention: only for tenant withdrawal, a failed Immigration Act 2014 Right to Rent check, or false or misleading information that reasonably affects your decision, and you must explain in writing within the statutory window
Why the agreement must be signed before payment
The retention grounds only protect you if you can show the applicant knew the terms when they paid. An agreement signed after the money moved, or never signed at all, leaves you arguing about what was said, and enforcement authorities can treat a wrongly retained holding deposit as a prohibited payment with penalties of up to £5,000, rising for repeat breaches.
The template's declaration block records the tenancy terms the deposit holds, the rent, the proposed start date, and the information the applicant has confirmed, which is exactly the evidence you need if a retention is challenged.
What's in the pack
- Holding deposit agreement (editable DOCX + typeset PDF)
- Payment receipt with the one-week cap calculation built in
- Retention decision letter templates for each lawful ground
- Deadline tracker: payment date, deadline for agreement, refund-by date
- Free re-issue when the Tenant Fees Act 2019 rules change
Frequently asked questions
How much can a holding deposit be in 2026?+
One week's rent, calculated as the annual rent divided by 52, under the Tenant Fees Act 2019. Anything above that is a prohibited payment.
When can a landlord keep a holding deposit?+
Only if the applicant withdraws, fails a Right to Rent check under the Immigration Act 2014, or gives false or misleading information that reasonably affects the decision to let, and you must set out the reason in writing within the statutory window. Otherwise it must be refunded within 7 days.
What is the 'deadline for agreement'?+
The date by which the tenancy must be entered into, 15 days after the holding deposit is received unless a different date is agreed in writing. If the deadline passes without a tenancy and the tenant is not at fault, the deposit is refunded.
Does the holding deposit count towards the tenancy deposit?+
If the tenancy goes ahead you can credit it to the first rent payment or the tenancy deposit with the tenant's consent. Remember the tenancy deposit itself is separately capped and must be protected in an authorised scheme.
Do holding deposit rules differ outside England?+
Yes. Wales bans most letting fees under its own legislation with different holding deposit rules, and Scotland prohibits premiums, holding deposits are generally not chargeable for Scottish PRTs. This template is drafted for England.
This page is drafted against the legislation below. Always check the current text of the law before acting.
- Tenant Fees Act 2019 (legislation.gov.uk)
- Immigration Act 2014 (Right to Rent) (legislation.gov.uk)
- Right to Rent document checks (GOV.UK)