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Original poster

Holding deposit;Am I entitled to refund if I change my mind.

29 replies

bingowashisname · 10/08/2021 16:04

Yesterday I went to view a flat, really liked the inside of it bit wasn't sure about the fact that it was on the second floor(3 flights of stairs) with no lift.I have 3 young children and I really just wanted to find a place ASAP so sent the letting agency the holding deposit of £320. But I've been thinking about those stairs and how hard it'll be to bring the pushchairs and as shopping up.

I called the letting agency awhile ago and told them I changed my mind, they said that's fine but I won't be getting the holding deposit back. My question is,am I entitled to a refund in this case?

OP posts:
Original poster
bingowashisname · 10/08/2021 16:05

Sorry about any grammar mistakes or confusion.. English is not my first language.

Thank you

OP posts:
BeaBeaBuzz · 10/08/2021 16:07

No, the point of the deposit is to hold it for you. They are generally non refundable otherwise they’d be pretty pointless. Did they share any t&c’s with you when you paid it?

Fancymice · 10/08/2021 16:08

I don't think you are unfortunately. Did they not send you any terms and conditions about the holding deposit?

Letting agents would have lots of people messing them around if holding deposits were refundable. It's a hard lesson to learn, but only put down your holding deposit if you are sure you want to rent the flat.

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Original poster
bingowashisname · 10/08/2021 16:14

No they didn't share any t&cs. They sent me a message with the account details.once I transferred the holding deposit they sent me an email containing what I needed to do next.

OP posts:
BeaBeaBuzz · 10/08/2021 16:15

Think it’s be very unlikely you’ll get it back, big lesson learned

lastqueenofscotland · 10/08/2021 16:15

No, it’s standard with deposits to stop exactly this happening

LolaSmiles · 10/08/2021 16:17

The deposit was to hold the property for you and therefore stop anyone else being given the property. You've had what you paid for. You're unlikely to get it back because you've changed your mind.

StarryStarrySocks · 10/08/2021 16:18

I thought it was illegal to do that? I'm in Scotland though so maybe it's different here. I moved flats earlier in the year and it was made very clear to me that the holding deposit was refundable up until I actually signed the lease.

JackieCollinshasnoauthority · 10/08/2021 16:20

Assuming you're in England, check this advice page from shelter:

england.shelter.org.uk/housing_advice/tenancy_deposits/holding_deposits

You may be entitled to a partial refund depending on the amount of rent.

CleanQueen123 · 10/08/2021 16:20

They can keep it but they can't charge you more than a week's rent.

Some useful information here: england.shelter.org.uk/housing_advice/tenancy_deposits/holding_deposits

Original poster
bingowashisname · 10/08/2021 16:20

Thank you all. Google wasn't given me a clear answer so I had to ask on here.

Hard Lesson learned.

OP posts:
namechange30455 · 10/08/2021 16:20

Sorry but that's literally the point of the holding deposit - I'd be amazed if you get a refund.

Orf1abc · 10/08/2021 16:22

Assuming this was not a short term let (like an AirBnb), then the above responses are wrong. Deposits can only be retained to cover the work already done. For example, time taken to complete paperwork. As you only paid yesterday, they have not done anywhere near enough to justify retaining £230.

Contact CAB for more advice, but in your position I'd be sending a letter before action and pursuing it through small claims.

www.citizensadvice.org.uk/consumer/changed-your-mind/cancelling-a-service-youve-arranged/

Lou98 · 10/08/2021 16:25

I'm in Scotland and usually here you don't pay the deposit until the day you sign the contract and get your keys, I do think it's a much better way of doing it.

However, if you wanted to flat held for you and that's why you paid the deposit then no you're not entitled to it back. It
is justified as holding it for you will have meant they haven't shown anyone else it when they could have found someone else to rent so will be losing money by not having viewings/taking tenants. I can see that it would be annoying if it's only been a day or so but it is allowed

Ariela · 10/08/2021 16:25

Holding deposits are legal but if landlord changes mind you get it back. Holding deposit shouldn't be more than a week's rent. If it's more I think this might be your only grounds for getting it back
england.shelter.org.uk/housing_advice/private_renting/letting_agent_fees_for_tenants

LolaSmiles · 10/08/2021 16:30

Orf1abc
Holding deposits are fine. The service that's being provided is holding the property for the person who has paid the deposit. They exist precisely because some people say they want a property and then change their mind, which is time the landlord can't be finding another tenant.

Shelter have advice on this that may be useful for the OP.

Original poster
bingowashisname · 10/08/2021 16:31

@Orf1abc the only thing they've done is send me an email asking for my name and anyone who will be moving into the property. I haven't sent them that so they couldn't have started the credit checks or draw up any paperwork.

OP posts:
LolaSmiles · 10/08/2021 16:32

That's not the point OP. The holding deposit is to hold the property for you. They've held the property.

Galassia · 10/08/2021 16:34

No way should you get it back. They held it for you and have as such fulfilled their side.

In future before you pay anything up front, check on here or with someone that is native here and will know all the rules and regulations.

It’s a shame you have lost the money but that is how things work here.

WTFisNext · 10/08/2021 16:42

Holding deposits are normally only returned if the preliminary information you provided to the letting agents (e.g. wage, no known history of CCJs) fails to secure your tenancy when run through proper checks like references or credit searches.

By all means contact Shelter or CAB for additional advice but I'd be surprised if you can just get a refund for changing your mind.

You have my sympathy though, the rental market where we are is brutal. We were asking to apply for everything that was half suitable before we secured our current place just because we needed to be homed and everything was disappearing often before it even hit rightmove et al and our section 21 notice was rapidly running out landlord selling

If the steps are the only drawback it may be worth persevering with the application until the rental market settles into something a bit more normal. Best of luck.

KupoNutCoffee · 10/08/2021 16:54

It may be worth asking if you can transfer it to another property.

I've made a mistake before putting on a holding deposit, in first year at uni. I felt really manipulated into doing so with the agent telling me how quickly places go, how I had to act quickly. Felt very rushed and worried I'd have nowhere to go. We argued with them (after all they'd have no issue finding someone else if it was so in demand).

If you only saw the place yesterday and put down a deposit same day with no paperwork, it does seem very rushed and they haven't allowed you to properly consider. While legally, taking a deposit so soon probably isn't an issue, it does allow them to make you feel pressured into committing very early because 'someone could call any minute'

Original poster
bingowashisname · 10/08/2021 17:13

So I just got a phone call from the guy who showed me the flat and he said he's spoken to his manager and he won't refund it but he will give me the money out of his pocket HmmConfused

He said the money will be from the agency business account and if I could send him £50 to his personal account after i receive the money.

It all sounds a bit wired

OP posts:
BeaBeaBuzz · 10/08/2021 17:14

Dodgy as f. Do not engage.

Original poster
bingowashisname · 10/08/2021 17:20

Weird*

OP posts: