Under the Tenant Fees Act 2019 (TFA) a
Holding Deposit is a refundable payment taken at the point of
reservation or booking to secure a property whilst your tenancy
agreement is prepared, and guarantor checks taken. During this time
the property / room will be taken off the market.
The Holding Deposit is equivalent to 1 weeks rent and as part of StudentTenant.com Limited’s Business Terms and Conditions both you and the Landlord consent that this will be refunded by way of deduction from your first monthly rental payment as prescribed by the TFA. This will be clearly shown in your Rental Summary.
Under the TFA, if you don’t enter into a Tenancy Agreement within 14 days, the Holding Deposit may under certain conditions either be retained by the Agent/Landlord, or be repaid to the potential tenant.
As a specialist Student Lettings Agency we ask that before you commit to a Holding Deposit you must agree to our Suitability Criteria:
You are an eligible higher education student over the age of 18, enrolled / enrolling at a UCAS recognised institution. We might ask for proof of this.
You meet the UK Government’s Right To Rent criteria. You will need to show the landlord your passport and relevant documentation (Right To Rent)
You can provide an acceptable UK guarantor (Be aged 21 or over, no CCJ or bankruptcy history and with earnings at least 3x the tenants annual rent, and be willing to be legally liable under a guarantor agreement), or if not available, agree with the landlord to pay rent in advance or by using a commercial Guarantor service.
Under the TFA a Holding Deposit can only be retained by an Agent/Landlord where a prospective tenant:
provides false or misleading information which it is reasonable for a landlord or agent to take it into account (this can include the tenants action in providing it) in deciding to grant the tenancy (e.g. affects their suitability as a tenant)
fails a Right to Rent check
withdraws from a property booking*
fails to take all reasonable steps to enter into a tenancy agreement when a landlord or agent has done so*
*this does not apply where a landlord or agent imposes a requirement that breaches the ban (e.g. requiring you to pay an unlawful fee) and/or acts in such a way that it would be unreasonable to expect you to enter into a tenancy agreement with them (e.g. including unfair terms in a tenancy agreement.