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Tenant Fees Act 2019
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3(1)Subject to sub-paragraphs (3) to (6), a payment of a holding deposit is a permitted payment.E+W
(2)In this Act “holding deposit” means money which is paid by or on behalf of a tenant to a landlord or letting agent before the grant of a tenancy with the intention that it should be dealt with by the landlord or letting agent in accordance with Schedule 2 (treatment of holding deposit).
(3)If the amount of the holding deposit exceeds one week's rent, the amount of the excess is a prohibited payment.
(4)In sub-paragraph (3) “one week's rent” means the amount of the annual rent payable in respect of the tenancy immediately after its grant, renewal or continuance divided by 52.
(5)A payment of a holding deposit is not a permitted payment if—
(a)the landlord or letting agent to whom the deposit was paid has previously received a holding deposit (“the earlier deposit”) in relation to the same housing,
(b)the landlord or letting agent has not repaid all or part of the earlier deposit, and
(c)none of paragraphs 6 to 12 of Schedule 2 have applied so as to permit the landlord or letting agent not to repay the earlier deposit or the part that has not been repaid.
(6)The reference in sub-paragraph (5)(a) to a landlord or letting agent receiving a holding deposit does not include the landlord or letting agent doing so before the coming into force of Schedule 2.
Commencement Information
I1Sch. 1 para. 3 in force at 1.6.2019 by S.I. 2019/857, reg. 3(z)
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