@Meg-And-Violet0
Yes, technically, Airbnb are witholding funds, but they have themselves covered in their Terms and Conditions, so taking legal action would most likely be a waste of your time and efforts. You should still lodge a complaint with the Financial Ombudsman though.
The UK Financial Ombudsman Service offer a free complaints resolution service to individuals, micro-enterprises, small charities, and trustees of small trusts.
You can contact the UK Financial Ombudsman by
(i) telephone from inside the UK: 0300 123 9123 or 0800 023 4567; from other countries: +44 20 7964 0500, on Monday to Friday, 8am to 8pm and on Saturday 9am to 1pm;
(ii) post: South Quay Plaza, 183 Marsh Wall, London E14 9SR; or
(iii) email: enquiries@financial-ombudsman.org.uk.
The UK Financial Ombudsman Service is also available in a number of different languages and if you need it you will be put in touch with a translator when you contact the UK Financial Ombudsman Service.