UK Landlord Forum / Life

Hi all,

To keep this brief, I need some advice on my position with a holding deposit refund. Essentially, I was looking to move to another flat (in London) with a friend. As we are students we are obliged to pay 6 months upfront (which I asked first to see if possible). The lettings agent confirmed that 6 months' advancement is perfectly fine. We did the viewing and I mentioned to the agent that 6 months is important because some properties ask for 12 months but given our cash constraints we wouldn't be able to do that. Again, he confirmed that 6 months' is fine.

We shortly after made an offer, which was accepted and paid the holding deposit (no terms to this, just an email asking for a holding deposit). Upon paying this, we were sent the lease agreement to sign. Only upon checking this, I discovered that they wanted 6 months immediately (as we requested), but then the next 6 month payment only 4 months later into the tenancy.

Given our financial situation, we cannot proceed. I anticipated that we could make 2x bi-annual payments (as we did this year in our current flat). Had I known otherwise, I would never have agreed to pay the holding deposit. Is there anything we can do? What are the chances for us being entitled a refund on it?

Any guidance is very much appreciated. Thanks.

If you tell the landlord you don't plan to enter an agreement within 15 days of transferring the money (unless another period was agreed), you're entitled to your deposit back (Schedule 2 (10) Tenant Fees Act). Whether that'll persuade the agent easily, god knows.

As a red flag, their payment plan isn't legal. It creates an additional tenancy deposit of two month's rent at month four. I'm sure that that's an innocent mistake and that they'll fall over themselves to fix it (side eyes emoji).

When you've sorted the holding deposit, tell your Uni housing team and trading standards.