What is a holding deposit?

A holding deposit is a payment (legally capped at one week's rent in England) that a landlord or agent can ask for to take a room off the market while they run reference and credit checks.

It's not the same as your security deposit - it should be refunded or put towards your first month's rent once you sign.

When you might lose it: if you provide false or misleading information, withdraw yourself, or fail right-to-rent checks. Landlords must return it within 7 days if they decide not to proceed, or if referencing doesn't work out through no fault of yours.

Red flag: if asked for more than one week's rent as a holding deposit, or if a landlord refuses to explain in writing when it will be returned.