Tenant Wins Return of Holding Deposit Under Tenant Fees Act 2019

OUTCOME: Allowed

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : LON/00BG/HTC/2025/0606 Property : [ADDRESS] [POSTCODE] Applicant : [redacted] : I/P Respondent : [redacted] : [COUNSEL] of [NAME] : For recovery of all or part of a prohibited payment or holding deposit: Tenant Fees Act 2019 Tribunal member : Judge Tagliavini Venue : 10 [ADDRESS] [POSTCODE] Date of decision : 6 August 2025

DECISION

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The tribunal’s summary decision

(1) The respondent is required to pay to the applicant the sum of £600

representing the tenancy deposit paid in respect of the property at [ADDRESS] [POSTCODE].

(2) The sum of £600 is to paid no later than 7 days of this decision being

sent to the parties.

_____________________________________________________

The [NAME]

1. This is an [NAME] for an order for the recovery of a holding deposit

paid in respect of a tenancy of [ADDRESS] [POSTCODE] (‘the flat’) pursuant to section 15 of the

Tenant Fees Act 2019.

The background

2. The applicant asserts in January 2025 the respondent received

payment of £600 as a holding deposit representing 1 month’s rent for

the [NAME] of a the subject flat. Although the [NAME]

passed the necessary referencing checks the tenancy was not entered

into due to the actions of the landlord and/or the respondent his agent.

The respondent subsequently informed the [NAME] the

deposit would be returned but has failed to do so.

The hearing

3. Neither party requested an oral hearing and the [NAME] was

determined on the documents provided by the applicant only as the

respondent failed to comply with the tribunal’s Directions dated 30 May

2025 and did not provide or rely upon any response or evidence

objecting to the [NAME].

The tribunal’s decision and reasons

4. The tribunal determines the applicant is entitled to the return of the

£600 paid as a holding deposit for the tenancy of the subject flat.

5. In reaching its decision the tribunal had regard to the [NAME] provisions

of the Tenant Fees Act 2019 which states at Schedule 2:

(1)This Schedule applies where a holding deposit is paid to a

landlord or [NAME] agent in respect of a proposed tenancy of

housing in England.

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2(1)In this Schedule “the deadline for agreement” means the

fifteenth day of the period beginning with the day on which the

landlord or [NAME] agent receives the holding deposit.

(2)But the landlord or the [NAME] agent may agree with the

tenant in writing that a different day is to be the deadline for

agreement for the purposes of this Schedule.

Requirement to repay holding deposit

3Subject as follows, the person who received the holding deposit

must repay it if—

(a)the landlord and the tenant enter into a tenancy agreement

relating to the housing,

(b)the landlord decides before the deadline for agreement not to

enter into a tenancy agreement relating to the housing, or

(c)the landlord and the tenant fail to enter into a tenancy

agreement relating to the housing before the deadline for

agreement.

4If paragraph 3 applies, the deposit must be repaid within

the period of 7 days beginning with—

(a)where paragraph 3(a) applies, the date of the tenancy

agreement,

(b)where paragraph 3(b) applies, the date on which the landlord

decides not to enter into the tenancy agreement, or

(c)where paragraph 3(c) applies, the deadline for agreement.

6. Section 15 of the Tenant Fees Act 2019 makes provision for the recovery

of the holding deposit and states:

(2)Subsection (3) also applies where—

(a)a landlord or [NAME] agent breaches Schedule 2 in relation to

a holding deposit paid by a [NAME], and

(b)all or part of the holding deposit has not been repaid to [NAME].

(3)[NAME] may make an [NAME] to the First-tier

Tribunal for the recovery from the landlord or [NAME] agent of—

(a)if none of the prohibited payment or holding deposit has been

repaid to [NAME], the amount of the prohibited

payment or holding deposit;

…

(9)On an [NAME] under subsection (3) or (5), the First-tier

Tribunal may order the landlord or the [NAME] agent to pay all

or any part of the amount or (as the case may be) the aggregate

amount referred to in that subsection to [NAME]

within the period specified in the order.

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(10)A period specified under subsection (9) must be a period of

at least 7 days but not more than 14 days beginning with the day

after that on which the order is made.

(11)An order of the First-tier Tribunal under this section is

enforceable by order of the county court as if the amount payable

under the order were payable under an order of that court.

7. It appears from the [NAME] that the [NAME] of the

subject flat were the applicant and [APPELLANT], although this has not

been expressly stated by the applicant. The tribunal is satisfied the

respondent was acting as the [NAME] agent of the landlord and by an

email dated 25 January 2025 informed [RESPONDENT] that a £600

deposit was required to be paid to the respondent in order to secure the

flat pending referencing. On 25 January 2025, the deposit was paid and

the respondent subsequently received £600 as a holding deposit from

[APPELLANT] as evidenced by the documents provided by the applicant.

8. However no tenancy agreement was subsequently entered into despite

referencing having been successfully completed and the offer of a

contract made. The tribunal is satisfied the landlord failed to enter

into a tenancy agreement despite the [NAME] being willing

to do so. Consequently the holding deposit was required by the Tenant

Fees Act 2019 to be returned by the respondent who had received it on

behalf of the landlord.

9. In conclusion the tribunal orders the respondent to repay the holding

deposit of £600 to the applicant no later than 7 days of this decision

being sent to the parties.

Name: Judge Tagliavini

Date: 6 August 2025

Rights of appeal

By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013, the Tribunal is required to notify the parties about any right of appeal they may have.

If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written [NAME] for permission must be made to the First- tier Tribunal at the Regional Office which has been dealing with the case.

5 The [NAME] should be made on Form RP PTA available at https://www.gov.uk/government/publications/form-rp-pta-[NAME]-for- permission-to-appeal-a-decision-to-the-upper-tribunal-lands-chamber

The [NAME] for permission to appeal must arrive at the Regional Office within 28 days after the Tribunal sends written reasons for the decision to the [NAME].

If the [NAME] is not made within the 28-day time limit, such [NAME] must include a request for an extension of time and the reason for not complying with the 28-day time limit; the Tribunal will then look at such reason(s) and decide whether to allow the [NAME] for permission to appeal to proceed, despite not being within the time limit.

The [NAME] for permission to appeal must identify the decision of the Tribunal to which it relates (i.e. give the date, the property and the case number), state the grounds of appeal and state the result the party [NAME] the [NAME] is seeking.

If the Tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).