UK Landlord Forum / Life

Hi everyone just looking for some advice. I had a lodger agree to move in on 12th April and they paid £250 holding deposit so that I could delete the online advert and save the room for them. The lodger has called me this evening (over a week later) stating that they have changed their mind and want their deposit back. I have declined four good people for the room since this person agreed to move in. I put together a tenancy agreement (stating rent price and £500 security deposit) and sent it to the person for review when they said they wanted the room but they didn't sign it. The full security deposit for the house would be £500 when they moved in of which I would take off the £250 already paid from the holding deposit once they move in. I feel in a difficult position as I am now frantically trying to find a new tenant after thinking everything was all sorted for the last 8 days. Can people please advise legally on what I should do? From forums searches I am grasping that I am under no obligation to return this. Thanks

What did you put on the receipt you gave-did you give a get-out period,or state it was non-returnable? This has been debated on here many times,but I don't think you are legally obliged to return this.They expected you to save the place for them,and you have honoured your side of the deal.I would say you are probably lucky if they changed their mind,sound rather flaky.

Thanks for replying. I didn't provide a receipt. We just spoke on the phone and they agreed to send £250 so I could remove the advert and then an additional £250 the day they moved in which would total £500 and act as security deposit