Holding Deposits

Thank you for your interest in renting a property through us. To help secure (or “hold”) a property while we complete all necessary checks and prepare the tenancy paperwork, we ask for a holding deposit, this is equivalant to one weeks rent. Below we explain exactly what this means, how much it is, how it is used, and under what circumstances it may be retained — in line with the Tenant Fees Act 2019 and associated guidance.

Tenancy Deposits

This will explain where your tenancy deposit is held, what it is used for and how it is repaid to you when your tenancy comes to an end.

Ending A Tenancy

To end a tenancy, it is important that it is ended in the legal framework that is designed for the tenancy and in accordance with the tenancy contract,  this page we explains how a tenancy is ended.........

FAQ's

It is impossible to answer all the questions associated with tenancies and rental properties but we have created a Frequently Asked Question section which may help.

Applying For A Tenancy

If you would like to apply for one of our tenancies, this page will explain all you need to know.........

During The Tenancy

This section will help you understand your tenancy, what the tenancy agreement means and what yours and our responsibilities are.

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Repairs & Maintenance

We explain the process relating to repairs and maintenance issues, the importance of reporting issues to us and what your responsibility is in relation to minor repairs......

What is a holding deposit?

The holding deposit acts as a demonstration of your serious intent to rent the property. Once you pay the holding deposit:

  • The property will be taken off the market (we will not continue advertising it)

  • We will carry out referencing, income and affordability checks, credit checks and any “right to rent” checks required by law

  • We will begin preparing the tenancy agreement and associated paperwork

How much is the holding deposit?

The holding deposit is equal to one week’s rent. This complies with the legal cap set by the Tenant Fees Act. We will calculate it based on the agreed rent for the property.

Very Important

A holding deposit is not pay the full Tenancy Deposit (security deposit). You should not pay the holding deposit until you have carefully read and accepted our full application terms. We will provide the terms of the tenancy application separately (these will include our referencing criteria, deadlines, and key obligations). Only once you have agreed these will we ask you for the tenancy deposit or move-in monies.

Why the holding deposit may be retained

Under the Tenant Fees Act 2019, we are legally entitled to retain the holding deposit in certain situations.
The main reason for this is the financial and time loss caused when a property is taken off the market for a tenant who later withdraws or fails the process.

When a property is reserved, it can no longer be offered to other applicants.
If the process then fails partway through, the landlord may lose several weeks of potential rent and incur administrative costs — for such things as referencing, right-to-rent checks, and document preparation.

For this reason, the law allows the holding deposit to be kept if you:

  1. Withdraw from the tenancy
    You decide not to proceed after paying the holding deposit.
    The property will have been off the market during this time, and other tenants will have been declined.

  2. Provide false or misleading information
    For example, incorrect income, employment, or identification details which affect our ability to offer you the tenancy.

  3. Fail a Right to Rent check
    If you do not have the legal right to rent in England and this is discovered after payment of the holding deposit.

  4. Do not take reasonable steps to enter into the tenancy
    If you do not complete the application or respond within the agreed timescale (normally 15 days), despite us meeting our obligations, we may retain the holding deposit.

These conditions are set out in Schedule 2 of the Tenant Fees Act 2019.

Deposit Returns

When the holding deposit will be returned

Your holding deposit will be refunded in full if:

  • the landlord decides not to proceed with the tenancy, or

  • the tenancy cannot go ahead through no fault of your own.

If the tenancy does go ahead, the holding deposit will normally be deducted from your first month’s rent or applied to your tenancy deposit by agreement.

Terms of Business – Holding Deposit

These terms apply when paying a holding deposit for a rental property managed by M&G Property.
They explain how the holding deposit is handled, what it covers, and the circumstances under which it may be retained or refunded in accordance with the Tenant Fees Act 2019.


Agreement

By paying the holding deposit, you acknowledge that:

  • you have read and understood these Terms of Business in full;

  • you are satisfied with the information provided to you about the property and the application process; and

  • you agree to proceed in good faith with your tenancy application in accordance with these terms.

Terms

By paying the holding deposit, you confirm that you understand and accept the following:

  • Property withdrawn from marketing:
    Upon receipt of the holding deposit, the property will be taken off the market.
    No further viewings will be conducted and no other applications will be accepted while your tenancy application is being processed.

  • Tenancy application process:
    The formal tenancy application will then commence. This includes completing the full tenancy application form, providing all supporting documentation, and undergoing referencing and affordability checks.

  • Guarantor application (where applicable):
    If a guarantor is required, the guarantor application and referencing process must also be completed satisfactorily before we can proceed with the tenancy.

  • Preparation of tenancy documentation:
    During the application period, we will prepare all necessary tenancy documents and agreements in readiness for signing, subject to satisfactory completion of all checks.

  • Non-refund of holding deposit:
    The holding deposit will not be refunded if:

    • you fail to disclose relevant information which later prevents the tenancy from proceeding;

    • you are unable to provide a suitable guarantor where one is required;

    • the referencing process is completed successfully and we offer you the tenancy, but you subsequently choose not to proceed; or

    • you otherwise fail to take reasonable steps to enter into the tenancy within the agreed timeframe.

If, however, the landlord decides not to proceed with the tenancy for reasons unrelated to your application, the holding deposit will be refunded in full.