Can a Holding Deposit be Retained by an Agent Under the Tenant Fees Act 2019?

Question from D, Can a Holding Deposit be Retained by an Agent Under the Tenant Fees Act 2019?

Answer from AI:

The Tenant Fees Act 2019 provides specific circumstances under which a landlord or letting agent can retain a holding deposit. According to the Act, a holding deposit can be retained if the tenant provides false or misleading information, and the landlord or agent is reasonably entitled to take into account the difference between the information provided by the tenant and the correct information in deciding whether to grant the tenancy because of the effect of this on their decision.

Understanding the Tenant Fees Act 2019

The Tenant Fees Act 2019 is designed to protect tenants from unfair fees. It sets out the only payments that landlords or letting agents can charge to tenants in connection with a tenancy. These include rent, a refundable tenancy deposit, a refundable holding deposit (capped at no more than one week’s rent), payments associated with early termination of the tenancy when requested by the tenant, and payments in respect of utilities, communication services, TV licence and council tax.

Disputing the Retention of a Holding Deposit

If you believe that your holding deposit has been unfairly retained, you can dispute this. Here are some steps you might consider:

1. Provide Evidence: If you have evidence that the information you provided was accurate, such as documents proving your address or guarantor details, you should present this to the agent.
2. Communicate with the Agent: It may be helpful to communicate with the agent to understand why they believe the information was misleading or incorrect. This could help clarify any misunderstandings.
3. Seek Legal Advice: If the agent continues to retain the deposit despite your evidence, it may be necessary to seek legal advice. A legal professional can provide guidance based on your specific circumstances.
4. Report to Trading Standards: If you believe the agent is acting unfairly, you can report them to Trading Standards, who can take action against agents who breach the rules.
5. Consider Alternative Dispute Resolution: If you cannot resolve the dispute directly with the agent, you might consider using an alternative dispute resolution (ADR) service. ADR is generally quicker and cheaper than going to court.

Remember, this information is a general guide and may not apply to your specific situation. It’s always a good idea to consult with a legal professional for personalized advice. You can find more information about the Tenant Fees Act 2019 on the UK Government’s website.