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Rent deposits


This Overview summarises what a rent deposit is, including obligations to top up the deposit and provisions in respect of withdrawal (‘draw down’), how deposits are held, and what the usual provisions are in a rent deposit agreement in respect of repayment of the deposit. Further materials are available in our subtopic on Rent deposits.

A rent deposit is a sum of money deposited by a tenant when it takes a lease; it is deposited as security against non-payment of rent and other breaches of the lease. They are often given where a lease is either assigned or granted and the incoming tenant cannot supply the landlord with evidence of sufficient financial worth. They may be offered in place of or in addition to a guarantee to improve the tenant's covenant strength.

Rent deposit agreements usually cover 'any' default or breach by the tenant, and not just rent arrears.

The tenant is usually obliged to 'top up' the deposit if the landlord has made a withdrawal, or if the rent increases at review.

The rent deposit deed should expressly state the circumstances in

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Latest Property Disputes News

Property Disputes weekly highlights—12 December 2024

This week's edition of Property Disputes weekly highlights includes: a High Court decision granting a final injunction against protestors, Upper Tribunal decisions on whether communal electricity charges that did not account for the use of solar panels were reasonably incurred, the threshold for unreasonable behaviour capable of justifying an order for costs, and calculation of ‘internal floor area’ for the purposes of the right to manage. It also includes the 178th Practice Direction update to the Civil Procedure Rules, the Ministry of Justice’s decision to publish the names of claimants of money judgments on the Register of Judgments, Orders and Fines in England and Wales, and amendments to the First-tier Tribunal and Upper Tribunal (Chambers) Order.

How long is twelve months? Upper Tribunal (Lands Chamber) considers principles for calculation of time periods (Moh v Rimal Properties Ltd; Kelly v Bostall Estates Ltd)

Property Disputes analysis: These appeals (heard together) concerned two applications for rent repayment orders against landlords who had each been managing a house in multiple occupation (HMO) without a licence. Both applications were dismissed as out of time, with this being upheld on appeal. In deciding the appeal, the Upper Tribunal (UT) had to decide how the expression ‘in the period of 12 months ending with the day on which the application is made’ was to be construed. In so doing, the judge considered the leading authorities on the construction of time periods, before finding these did not cover the statutory language used. It is a useful reminder to all practitioners that a time period can be shorter than it first appears. The judge also had to decide at what point in time a defence under section 72 of the Housing Act 2004 (HA 2004) is deemed to arise for the purpose of calculating the time period. Written by Joseph Bunting and Timothy Foot, barristers, Maitland Chambers, London.

Names of claimants of money judgments to be published on the Register of Judgments, Orders and Fines in England and Wales

The Ministry of Justice (MoJ) has concluded its consultation on the proposal to include the names of claimants on the Register of Judgments, Orders and Fines in England and Wales (the Register). The consultation sought views on amending legislation to allow the names of claimants in money judgments from the County Court and High Court to be published on the Register. After analysing the responses, the MoJ has decided to implement the proposal and plans to lay Regulations in parliament to put this into effect.

Property Disputes weekly highlights—5 December 2024

This week's edition of Property Disputes weekly highlights includes: Court of Appeal decisions on the Tenant Fees Act 2019 and estoppel in an adverse possession claim, High Court decisions concerning occupiers’ liability, mesne profits, and non-payment of a court fee when issuing a lease renewal claim, and Upper Tribunal decisions on modification of a restrictive covenant and the application of non-domestic rates to barristers’ chambers. It also includes the publication of the Ministry of Housing, Communities and Local Government (MHCLG)’s new Remediation Acceleration Plan (RAP), the MHCLG’s consultation on permitted insurance fees for landlords and freeholders, and the Supreme Court and Privy Council’s new websites and online Case Management Portal.

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