Abstract
The Tenant Fees Act 2019 aims to stop landlords and letting agents in
England from taking advantage of prospective tenants who pay holding
deposits. It caps the maximum holding deposits that can be taken to one
week’s rent. A holding deposit, as the Act’s sponsor Lord Bourne
confirmed, creates “a binding conditional contract between landlord and
tenant where both parties agree to enter into the tenancy, subject to
the satisfactory fulfilment of all pre-tenancy checks.”
This article outlines when a party can and cannot cancel a holding deposit agreement. It also clarifies when a landlord or their agent may retain a holding deposit, when they must refund it, and when they may be liable for damages for contract repudiation.
This article outlines when a party can and cannot cancel a holding deposit agreement. It also clarifies when a landlord or their agent may retain a holding deposit, when they must refund it, and when they may be liable for damages for contract repudiation.
| Original language | English |
|---|---|
| Pages (from-to) | 4-5 |
| Journal | Housing Matters |
| Volume | 130 |
| Publication status | Published - 2019 |