A Holding Deposit (HD) is a sum of money held by a landlord or letting agent as a safeguard to secure a property for a prospective tenant. It is a non-refundable deposit paid by the tenant to the landlord or letting agent before signing a tenancy agreement. The purpose of this deposit is to demonstrate the tenant’s commitment to the property, and to ensure that the tenant will not withdraw from the agreement. The scope of the Holding Deposit is determined by the landlord or letting agent, and can vary from one tenancy to another. The Holding Deposit is typically equal to one week’s rent, although it can be more. The Holding Deposit must be returned to the tenant if the tenancy does not go ahead due to the landlord or letting agent’s failure to fulfil the agreement, or if the tenant withdraws from the agreement. If the tenancy does go ahead, the Holding Deposit will usually be deducted from the first month’s rent.