Holding Deposit
A capped one-week refundable deposit a landlord or agent can take to reserve a property while reference checks are completed. Under the Tenant Fees Act 2019 it cannot exceed one week’s rent and must be returned, applied against the first rent or applied against the security deposit within 15 days of receipt unless the tenant withdraws, fails Right to Rent, provides false information or fails to take all reasonable steps to enter the agreement. Charging more than one week, or wrongly retaining the deposit, is a banned payment with civil penalties up to £30,000.
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Related terms
Deposit Cap
The limit on tenancy deposits set by the Tenant Fees Act 2019. Five weeks' rent where annual rent is under £50,000, six weeks' rent where rent is £50,000 or more. Holding deposits are separately capped at one week's rent.
Banning Order
A court order under Part 2 of the Housing and Planning Act 2016 banning a person convicted of certain housing offences from letting property, engaging in lettings agency work or holding an HMO licence. Triggered by a banning-order offence (Schedule 1 of the Act): includes serious housing-condition offences, illegal eviction and unlawful HMO operation. A banned landlord is added to the national database of rogue landlords and breach of the order is itself a criminal offence with up to 51 weeks’ imprisonment.
Tenant Fees Act 2019
Legislation banning most fees charged to tenants in England. Permitted payments are limited to rent, a refundable tenancy deposit (capped at 5 or 6 weeks), a holding deposit (1 week), default fees, tenant change fees and early termination fees. Breaches carry fines up to £30,000.
Check-in / Check-out Report
The dated, photographed inventory record taken at the start (check-in) and end (check-out) of a tenancy, signed by tenant and landlord/agent. It is the primary evidence base for any deposit deduction claim through the DPS, TDS or mydeposits adjudication process — without it, the scheme will almost always award the deposit back to the tenant. Best practice: third-party inventory clerk, time-stamped photographs of every room and meter reading, and tenant sign-off within 7 days.
Deposit Protection Scheme
A government-authorised scheme that holds or insures tenancy deposits. Three schemes are approved in England: DPS (Deposit Protection Service), TDS (Tenancy Deposit Scheme) and mydeposits. Deposits must be protected within 30 days of receipt.
DPS (Deposit Protection Service)
The largest of the three government-authorised deposit protection schemes in England. Offers both custodial (free) and insured deposit protection. Landlords upload deposits within 30 days and issue Prescribed Information to the tenant.