Holding deposit. Bad Missuse

Advice needed , or is this unethical ?
Someone I know who is on disability and has two disabled children. Requires renting a property urgently. This due to other circumstances not being rent arrears etc.
They known how much can claim in rent, paid for by council etc direct to a landlord.
Found a suitable property . Asked to view and sent message stating about being on ‘benefits’ and children .Plus rent would be paid direct .
Were given a viewing. Not long after viewing . Message to say . If wish to proceed , send holding deposit with amount with a link to do so. Money sent within an hour.
Later in day , evening. Message from prospective landlord. Saying sorry cannot accept due to being on ‘benefits’. Also another message to say deposit will be returned . Could take ten days.
This has now this family in a very bad situation . Cannot look for another property as such. Due to if being accepted . No holding deposit .
Do people on here think this is very unethical behaviour ?

The tenant should just now focus on finding a landlord who will accept them.

Was the deposit paid through openrent?

Rent is not usually paid direct to LL unless tenant falls behind.

Can’t they afford 1 weeks rent for another holding deposit? Having zero in the bank won’t look great to any DSS sympathetic landlord, most want to see bank statements. They should offer a guarantor.

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