What Is a Holding Deposit in London?

A holding deposit is a payment made to reserve a rental property while checks and paperwork are completed.

In England, a holding deposit is capped at one week’s rent. The usual agreement deadline is 15 days unless a different period is agreed in writing. It is normally returned or, with your agreement, credited towards rent or the tenancy deposit, but specified exceptions can apply. Read the government guidance on holding deposits and refunds before paying.

Before paying one, make sure you understand:

• Who you are paying
• How much you are paying
• Whether it is refundable
• What conditions apply
• What happens if the landlord pulls out
• What happens if you fail referencing
• Whether the property will be removed from the market

Do not pay casually. Make sure you are dealing with a legitimate landlord or agent and that the property details are clear.

For people moving from overseas, the pressure can feel intense because you may be trying to secure a home before arrival. But a holding deposit is still a financial commitment, so pause long enough to check the basics.

If you are unsure, ask for the terms in writing.

Relocation Ready can help you understand the rental steps before you start making payments.

Continue planning your move

• London Rental Viewings: What to Check Before You Say Yes
• What Documents Do You Need to Rent in London?

Talk to us about your move — start with a free one-hour relocation consultation.