# Holding deposit and tenancy deposit caps: one week's rent, 15 days, then 5 or 6 weeks, worked at £1,300 and £4,500 a month

> A holding deposit is capped at one week's rent and held 15 calendar days. The tenancy deposit is 5 weeks' rent, or 6 over £50,000 a year. Worked in pounds.

- Page to cite: https://aeolookup.com/letting-agents/holding-deposit-one-week-rent-15-days-tenancy-deposit-5-weeks-6-weeks-worked/
- Publisher: AEO Lookup (https://aeolookup.com/)
- Section: Letting agents, Deposits, rent and fees
- Published 11 October 2026
- Key fact: A rent of £1,300 a month is £15,600 a year, or £300 a week. The holding deposit cap is £300 and the tenancy deposit cap is 5 weeks, £1,500. A rent of £4,500 a month is £54,000 a year, over the £50,000 line, so the cap moves to 6 weeks: £1,038.46 a week, £6,230.77, which is £1,038.46 more than 5 weeks would have been.
- Sources: GOV.UK, "Fees you can charge as part of a tenancy" (holding deposit maximum one week's rent; 15 calendar days unless agreed otherwise in writing; return within 7 days; tenancy deposit up to 5 weeks' rent where annual rent is below £50,000 and up to 6 weeks between £50,000 and £100,000). Read 11 October 2026.

An applicant asks for a flat at £1,300 a month and the negotiator says "we take a holding deposit of a month's rent to secure it". That is four weeks too many. The rules are written in weeks, and the sum needs doing from the monthly rent every time. This guide gives the arithmetic for a typical rent and for one above the £50,000 line, with the return rules that follow from it.

## The rule on GOV.UK

The page says "the maximum holding deposit you can ask for is equivalent to 1 week's rent". Only one can be held for a tenancy at a time. The standard holding period is **15 calendar days** from receipt, and the landlord and tenant can agree a longer or shorter time in writing.

For the tenancy deposit, "you can require a tenancy deposit of up to 5 weeks' rent for properties where the annual rent is below £50,000", and up to **6 weeks** where annual rent is between £50,000 and £100,000. Any deposit taken has to go into a government-approved scheme.

## The weekly rent from a monthly figure

Annual rent is the monthly rent times twelve; weekly rent is the annual figure divided by 52.

| Monthly rent | Annual | Weekly | Holding deposit cap | Weeks allowed | Tenancy deposit cap |
|---|---|---|---|---|---|
| £800 | £9,600 | £184.62 | £184.62 | 5 | £923.08 |
| £1,300 | £15,600 | £300.00 | £300.00 | 5 | £1,500.00 |
| £4,166 | £49,992 | £961.38 | £961.38 | 5 | £4,806.92 |
| £4,500 | £54,000 | £1,038.46 | £1,038.46 | 6 | £6,230.77 |

The table is our own arithmetic. The line is crossed at £4,167 a month: at £4,166 the annual rent is £49,992 and the 5-week cap applies, one pound a month later it is £50,004 and the cap becomes 6 weeks.

## When the holding deposit has to be given back

GOV.UK lists the cases where the money may be kept: the tenant fails a Right to Rent check, withdraws, does not respond, or gives false or misleading information affecting suitability. Otherwise it is returned. If the tenant signs the tenancy, it is refunded, which can be done by reducing the first month's rent or the tenancy deposit, only if the tenant agrees. In other cases "you must return the deposit within 7 days". If you keep it, the written reason also has to go to the tenant within 7 days, and failing to do so may lead to a financial penalty.

## What to check on file

- **Is the receipt date recorded?** The 15 days run from receipt, not from the viewing.
- **Is the deadline in the tenancy-offer email?** A different period has to be agreed in writing.
- **Is a reference check being used to keep the money?** The page lists specific reasons; a failed credit score is not one of them.
- **Has anyone taken a second holding deposit?** Only one at a time.

Most agents use this alongside the [new tenancy checklist](https://aeolookup.com/letting-agents/new-tenancy-checklist-letting-agents-england/) and the [rent-increase date guide](https://aeolookup.com/letting-agents/can-the-rent-go-up-now-and-from-what-date-letting-agents/).

I did not read the penalty amount for failing to return the money or for a prohibited payment, so check the full guidance before you quote one.

Overlyft ![](https://aeolookup.com/img/d/ours-badge.png) builds AI staff who join your lettings team and check every holding deposit against its cap and its 15-day and 7-day dates, then put the exceptions in front of the negotiator before they are chased by the tenant.

This is general information, not legal advice. Check GOV.UK before you rely on it.

---
![](https://aeolookup.com/img/d/owner-line.png)

General information for UK small firms, not legal, tax or financial advice.