Product code: F110C – for updates see tab
From 1 June 2019, under the Tenant Fees Act 2019, a “holding deposit” is a permitted payment up to a maximum of 1 weeks rent. However, there is a very specific procedure to be followed when handling holding deposits.
If a person wants to hold onto and retain a holding deposit, the person who received the money must inform the payer within 7 days giving reasons why the holding deposit isn’t going to be repaid (the 7 days is calculated differently depending on the circumstances). There are essentially four reasons to hold onto the holding deposit and not repay it (see the link above for details of when a landlord or agent doesn’t have to repay a holding deposit and how the 7 days notice is calculated).
If the receiver of the holding deposit fails to provide notice to the payer within 7 days giving reasons why the holding deposit is being retained, the holding deposit must be repaid in full regardless of circumstances.
This template is a letter in Word format which has been created for informing the payer that the landlord or agent (or whoever received the holding deposit) is not repaying the holding deposit as a result of the tenant informing the landlord that they no longer wish to proceed with the tenancy.