Initial Holding Deposit

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I have a prospective tenant who is due to move into my property in one week's time. All was going to plan until I heard that she was being evicted from her current home for not paying the rent, I took this with a pinch of salt as my informant is friends with another family that were interested and thought i was just being given duff info.

However I have just received a landlords reference which states that she was 4500 in arrears over a 12 month period (rent 525) after keeping her LHA

Now, I was told by the prospective tenant that she was leaving because the landlord was divorcing his wife and they needed the property back.

Is this false information enough for me to warrant withholding the initial holding deposit that was paid for me to secure the property?
admittedly, it is me cancelling the tenancy due to a bad reference, but we would never have come this far had she not lied to me on day 1.

Any advice is welcomed.

Also, has anybody ever heard of a landlord giving bad references in order that the tenant cant get a new property to live in therefore staying with the current landlord?

10/09/2010 00:00

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