Holding deposit

Tenancy Deposits

I recently advertised my property for rent, and included in the advert a line that said "No admin fee except a charge for credit checks"

Potential tenant came and viewed place, loved it and put £170 holding deposit down. When I emailed her confirmation through later that evening including various forms to fill in and a receipt for the holding deposit I also included in the email a note to say that whist we hadn't discussed the credit check in person at the viewing the fee was £25 per person for the check.

She emailed back to say that her boyfriend was not happy having a credit check and upon that basis they weren't prepared to pay for credit checks and no longer wanted the property.

Where do I stand in terms of the holding deposit? I didn't used the RLA form so there were no conditions attached in writing - all i said at the property was " the deposit was refundable should something on the tenancy application form or references not check out" but not if changed their mind about renting the property.

Whilst I try to run my business on a moral and above board level I was just wondering what the legalities were regarding keeping the holding deposit? IS this there to compensate landlords should tenants change their mind?

Many thanks

Hugh