As a university student, you might encounter landlords asking for a small holding deposit when you're interested in renting a property. This deposit is meant to secure the property temporarily while they prepare the tenancy agreement for your review and signing. It's important to know that, according to the Tenant Fees Act 2019, this deposit should not exceed the equivalent of one week's rent.
The holding deposit is only refunded if the Landlord decides not to continue with the rental agreement. However, if you, as the tenant, change your mind and decide not to proceed with the tenancy, the landlord can keep the holding deposit.
The holding deposit can also be retained by the landlord if you fail to sign the tenancy agreement within the specified timeframe. The usual "deadline for agreement" is about 15 days from the time you pay the holding deposit, but you and the landlord can mutually agree on a different timeframe, which could be more or less than 15 days.