Yes they do vary nowadays. Some of these refencing companies want to access your tax history or they want to access you bank account. For example Blinc-UK if you look at their website. I don’t want to pay a holding deposit, and then suddenly I’m dealing with some arbitrary company that is demanding all these references, otherwise I lose my money. I just want to use OpenRent for properties listed on OpenRent.
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Why are you against providing certain types of info?
So the landlord doesn’t have to provide any proof of his ownership or financial position. But I am expected to sacrifice any privacy that is demanded of me, otherwise my money is taken. So I try and use a platform like OpenRent that holds my money in escrow, but there is no way to know if the landlord intends to actually use the platform.
Why should the landlord tell you about his financial situation? You want HIS property. Are you a first time renter? He is risking more than you.
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So a point of principle? Many landlords will happily provide proof of ownership if requested.
Digging into a potential tenant finances is no more than any lender does to the landlord. With the RRA more landlords will be looking closer at an applicants finances. It should be reassuring that a landlord takes it seriously.
A sceptic may think that you have something to hide.
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Do you normally ask what business’s state of affairs is before purchasing from them?
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Good point Mark10. Have you checked Open Rent out on Companies House @Chris17?
Seriously though, I’ve used OR to advertise properties multiple times over the last 6 years. I’ve only once ever actually arranged a tenancy through them and that was the first time. After that, I just used it to advertise. Everything else, I did myself. That’s pretty typical. To be honest, you’re being unnecessarily cautious and, if you don’t think somebody handing over their biggest asset by far to you deserves them to be cautious in return, then private renting isn’t for you.
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OpenRent is a major brand so I trust them with the holding deposit. I can check their filings on companies house if I wanted to, but I can’t do that for a landlord.
I just want an escrow service for the holding deposit, which OpenRent provides but the landlord’s won’t use it.
Everyone else in the world uses escrow for purchases. When you buy something, your card provider upholds a 14 day cooling off period for example.
“ everyone else in the world uses escrow for purchases” you said . Not so I do not. You are a first time renter then. Get your holding deposit back and move on to another property
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@Chris17 you trust OR but you don’t like their business model which is to offer free listings to entice a % of landlords who use that to use their further services Inc deposits/tenancy creation.
But you blame OR for not having a checkbox to allow you to search for those LLs you want to consider. There will be others who would like a check box for ‘smokers allowed’ or ‘child friendly’
QED Choose a lettings agency instead. They will almost always be taking the deposit. (But you still need to check)
Ps nothing to stop you telling LL you want to pay holding deposit using a credit card.
Pps if LLs unfairly holding on to holding deposits was a significant problem for tenants you can bet it would have been debated and the law strengthened in the new Renters Rights Act. Although not described as a major feature, RRA has strengthened existing rules (see below) but doesn’t force any escrow solution on LLs, instead LAs have greater powers for enforcement against rogue LLs
“
The Renters’ Rights Act 2025 does
not introduce significant changes to the existing rules on holding deposits, but instead reinforces and strengthens the regulations already established by the Tenant Fees Act 2019. The primary “improvement” for tenants comes from the stricter enforcement and the new overall tenancy framework, rather than new holding deposit specific rules.
Key points regarding holding deposits under the Act:
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Maximum Amount Unchanged: The maximum holding deposit a landlord or agent can charge remains capped at no more than one week’s rent.
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Permitted Payments: Holding deposits are one of the few payments that landlords can legally request from prospective tenants, alongside the security deposit and rent.
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Clear Rules for Retention/Refund: The existing strict conditions for when a holding deposit can be retained are maintained:
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The tenant withdraws their application.
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The tenant fails a “Right to Rent” check.
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The tenant provides false or misleading information that reasonably affects the landlord’s decision to let the property.
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The tenant fails to take all reasonable steps to enter into the tenancy agreement by the agreed deadline.
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Mandatory Refund: Landlords and agents must refund the deposit in full if they decide not to let the property or fail to enter into a tenancy agreement within the 15-day “deadline for agreement” (unless a longer period is mutually agreed in writing), provided the tenant has acted reasonably. The refund must be made within 7 days in these scenarios.
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Enforcement: Local authorities have enhanced powers and increased penalties (up to £5,000 for a first offence, up to £30,000 for subsequent breaches) for landlords or agents who breach the deposit rules, which serves as a stronger deterrent against unfair practices.
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Credit Towards Tenancy: Once the tenancy agreement is signed, the holding deposit should be either refunded to the tenant or, with their agreement, put towards the first rent payment or the security deposit.
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No Deposit Passporting Yet: While the Act provides a framework for a future “lifetime” (transferable) deposit model to help tenants with upfront costs when moving, the operational details are not yet in force and will require secondary legislation.
In essence, the Act aims to ensure that the rules already in place are more effectively enforced and integrated into the new rental framework, giving tenants greater confidence that their holding deposits will be handled fairly and lawfully.”
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Then don’t. Find a landlord who uses a letting agency like OR.
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This Tenant Fees Act is terrible legislation by the way. “provided the tenant has acted reasonably” is completely open to abuse. It’s another example of bad laws which are all too common nowadays.
All I want really is to be able to press Rent Now and pay the holding deposit to OpenRent and then, whatever the landlord demands after that, if I refuse the landlords demands, then the holding deposit simply comes back to me.
@Chris17 so where’s your evidence of this abuse happening? It’s all been considered again by Parliament through the RRA (and under the previous govt before it fell) which strengthened the existing system with greater powers for LAs and landlords needing to explain upfront more clearly the reasons it could be withheld. But no req for every listing business to have a tickbox to say the landlord will use an escrow or intermediary to hold the holding deposit. Would you impose that on eg rightmove, Zoopla and every website by every letting agency or just OR? How would you enforce it?
The simple fact is a very small % of tenants will be either unprepared or lazy or unco operative and will not behave reasonably. This costs LLs who waste time and money with properties empty and stops serious tenants from filling those properties. The holding deposit is meant to be a serious intent and means a LL can’t accept applications from others in the meantime. So if a tenant does behave unreasonably and wastes everyone’s time, it’s totally fair for the LL to be recompensed. Tho most LLs wont bother as it’s hard to prove someone was unreasonable and they will focus on finding a different person for their property not waste time and effort chasing 1 weeks rent. Just like a very small % of LLs can be misleading about important aspects of the property they advertise and the tenant is protected by consumer legislation and can claim but most will just give notice
And what is considered ‘reasonable’ or ‘unreasonable’ will be established by caselaw over time (if it is not established already) just like every other aspect of legislation where they may be different interpretations. That doesn’t mean the law is bad. For example it’s case law which establishes what ‘behaving in a tenant like way’ means re who is responsible for which sort of maintenance.
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another example of an individual not answering all our questions > It will go on and on and on…. If we let it
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Oh let’s please do… it’s always fun to watch…
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I have a property for let on the OR site presently. I ask if renters agree to be referenced, I also state that I will conduct all financials myself as I am a hands on LL that does everything. Many LL are like myself but do things differently ,that doesnt mean to say they are not trustworthy ect. When I check a tenant I use a credit agency that gives the best deal at the time so this can vary like shopping at the supermarket. This time it isnt going to be OR but the loaf of bread will still be the same.
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Get used to tougher and more thourough referencing, thanks to Shelter and RR
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you have a wicked streak in you !
I do all my own referencing (but I do not take a holding deposit). Many of the frequent contributors on these forums are highly experienced landlords and also do their own referencing. I only started doing this after getting quite poor service for referencing agencies (including the one OR uses) and they are mostly useless for international tenants.
My process: I show proof of ownership of property to be rented (Land Registry title), my proof of identity and issue potential tenant with my GDPR - Data Privacy Fair Processing Notice. I tell them which documents I require from them depending on their source of income. Some combination of at least 3 months bank statements (must be mostly unredacted), proof of employment, proof of salary, contact for employment reference, previous landlord/agent contact for reference and for tenant to provide proof of current address, proof of right to rent and full search report of CCJs and other unsettled debts etc. I might ask for other documents depending on the circumstances. For self employed, last 3 years certified tax returns. I only take into account provable regular income and not savings. I then go and take the references if all the provided data checks out and I am planning on proceeding with that tenant.
If a potential tenant does not wish to provide these (standard) documents then I will never be providing them with the keys to a property and I’ve doing this for a long time.
My advice to Chris17, if the landlord you are dealing with makes you feel uncomfortable with requests for information and doesn’t provide you with a GDPR notice or explain what documents they will want and why then you should walk away. You will get your holding deposit back if a landlord makes an unreasonable request for information that is not explicitly linked to assessing your fitness to take on a tenancy and ability to pay the rent.
“You will get your holding deposit back if a landlord makes an unreasonable request for information that is not explicitly linked to assessing your fitness to take on a tenancy and ability to pay the rent.”
On that basis, they can request basically anything. Now they want open banking, and access to your tax records. So that 6 months you spent out of work, the landlord doesn’t like it, so they say you failed affordability checks, and they keep the holding deposit. Literally any excuse, they will keep the money.
It’s just too risky now to give them a holding deposit. For this reason, I am looking at cheaper places within commute distance, to minimise the risk.