SCHEDULES
SCHEDULE 1Permitted payments
3Holding deposit
1
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
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.