Agency not returning holding deposit! Advice ?

[AccioCheese]

Hi there,

I need some help and advice pleaseee
My sister found a nice place to rent for uni, she is getting more than enough in maintenance loan to pay for the place and she’s never missed a single payment in rent in her last place.

She’s paid her holding deposit and the agency have asked for guarantor details. Originally I was happy to be her Guarantor but I lost my job so my dad who is self employed added himself. Sadly he did not pass their credit check requirements. we have stated she will be able to pay for the property but without a Guarantor that meets their income needs she wasn’t allowed to go through the tenancy and they are refusing to give back the deposit.

Are they allowed to keep the holding deposit if the Guarantors don’t meet credit check? 😔

Did she sign anything when she paid the deposit? Or do the agency have T&C's on their website?

In general I think she should get it back. But I'm not a lawyer. england.shelter.org.uk/housing_advice/tenancy_deposits/holding_deposits

Hi @ThePlantsitter
Yes she signed the tenancy application form
Which states that her holding deposit won’t be returned if there are any broken immigration rules

Thank you @ThePlantsitter I’ll check it out

God this is awful
Has she tried to see if they can speak to the landlord and explain she's always paid on time?
Whole thing sucks ☹️

Right well she needs to write a stiff letter then. Presumably she didn't mislead then about your job/your dad's circumstances? That's the only other reason they would have for keeping it according to the shelter info. I would write the following:

Dear (agent)

I am writing to formally request a refund of the £xx I paid as holding deposit for on .

I understand that my guarantor did not meet the requirements to pass your credit check. However this does not constitute a reason to withhold the money. I acted honestly and in good faith throughout the application process and did not withhold any information from you. My status as a British Citizen (if she is!) means I cannot possibly have broken any UK immigration law.

Please repay the deposit as soon as possible. I look forward to hearing from you soon.

Yours etc
Accio Cheese's niece

Obviously that only works if everything in there is true and she hasn't signed anything that says something else!

She should also get in touch with the Universities accommodation office. They can offer advice, and warn other students about the agency.

While it has been a long time, student unions often had a solicitor on a pro bono retainer for threatening letters.

It depends what she has signed but from my experience in an estate agents the deposit can be kept if the checks are not passed, however they would know whether the guarantor would meet the income threshold before submitting them and they can speak to the reference agency to fight her corner if they believe she will be a good tenant.