diff --git a/pallets/housing_fund/src/functions.rs b/pallets/housing_fund/src/functions.rs
index fb047cca..d6ddac05 100644
--- a/pallets/housing_fund/src/functions.rs
+++ b/pallets/housing_fund/src/functions.rs
@@ -84,7 +84,7 @@ impl<T: Config> Pallet<T> {
 		}
 
 		// The amount is tagged as reserved in the fund for the account_id
-		T::LocalCurrency::reserve(&T::PalletId::get().into_account_truncating(), amount)?;
+		T::LocalCurrency::reserve(&Self::fund_account_id(), amount)?;
 		fund.reserve(amount);
 
 		// The amount is reserved in the pot
@@ -120,4 +120,48 @@ impl<T: Config> Pallet<T> {
 	pub fn get_contributions() -> Vec<(AccountIdOf<T>, Contribution<T>)> {
 		Contributions::<T>::iter().map(|elt| (elt.0, elt.1)).collect()
 	}
+
+	pub fn cancel_house_bidding(nft_collection_id: NftCollectionId<T>, nft_item_id: NftItemId<T>) -> DispatchResultWithPostInfo {
+		let reservation_wrap = Reservations::<T>::get((nft_collection_id, nft_item_id));
+
+		ensure!(reservation_wrap.is_some(), Error::<T>::NoFundReservationFound);
+
+		let reservation = reservation_wrap.unwrap();
+
+		let contributions_iter = reservation.contributions.iter();
+
+		for item in contributions_iter {
+			let entry = Contributions::<T>::get(item.0.clone());
+			Contributions::<T>::mutate(item.0.clone(), |val| {
+				let mut unwrap_val = val.clone().unwrap();
+				unwrap_val.unreserve_amount(item.1);
+				let contribution = unwrap_val.clone();
+				*val = Some(contribution);
+			});
+		}
+
+		let mut fund = FundBalance::<T>::get();
+		T::LocalCurrency::unreserve(&Self::fund_account_id(), reservation.amount);
+		fund.unreserve(reservation.amount);
+
+		Reservations::<T>::remove((nft_collection_id, nft_item_id));
+
+		// The amount is reserved in the pot
+		FundBalance::<T>::mutate(|val| {
+			*val = fund.clone();
+		});
+
+		// Get the block number for timestamp
+		let block_number = <frame_system::Pallet<T>>::block_number();
+
+		// Emit an event.
+		Self::deposit_event(Event::FundReservationCancelled(
+			nft_collection_id,
+			nft_item_id,
+			reservation.amount,
+			block_number,
+		));
+
+		Ok(().into())
+	}
 }
diff --git a/pallets/housing_fund/src/lib.rs b/pallets/housing_fund/src/lib.rs
index 1a4e3502..f8afdca5 100644
--- a/pallets/housing_fund/src/lib.rs
+++ b/pallets/housing_fund/src/lib.rs
@@ -117,6 +117,7 @@ pub mod pallet {
 		),
 		/// Fund reservation succeded
 		FundReservationSucceeded(T::NftCollectionId, T::NftItemId, BalanceOf<T>, BlockNumberOf<T>),
+		FundReservationCancelled(T::NftCollectionId, T::NftItemId, BalanceOf<T>, BlockNumberOf<T>),
 	}
 
 	// Errors inform users that something went wrong.
@@ -144,6 +145,8 @@ pub mod pallet {
 		NotAnInvestor,
 		/// Must not have more investor than the max acceppted
 		NotMoreThanMaxInvestorPerHouse,
+		/// The reservation doesn't exist in the storage
+		NoFundReservationFound,
 	}
 
 	#[pallet::call]
diff --git a/pallets/housing_fund/src/structs.rs b/pallets/housing_fund/src/structs.rs
index eefbcdc8..ec275e9a 100644
--- a/pallets/housing_fund/src/structs.rs
+++ b/pallets/housing_fund/src/structs.rs
@@ -63,6 +63,13 @@ impl<T: Config> FundInfo<T> {
 		// add the amount to reserved
 		self.reserved += amount;
 	}
+
+	pub fn unreserve(&mut self, amount: BalanceOf<T>) {
+		// remove the amount to reserved
+		self.reserved -= amount;
+		// add the amount to transferable
+		self.transferable += amount;
+	}
 }
 
 // Contains amount and timestamp of an account
diff --git a/pallets/housing_fund/src/tests.rs b/pallets/housing_fund/src/tests.rs
index 1d321e92..b5c27065 100644
--- a/pallets/housing_fund/src/tests.rs
+++ b/pallets/housing_fund/src/tests.rs
@@ -618,6 +618,101 @@ fn house_bidding_with_valid_values_should_succeed() {
 	});
 }
 
+#[test]
+fn cancel_house_bidding_with_invalid_values_should_fail() {
+	new_test_ext().execute_with(|| {
+		// Try to cancel a bidding that doesn't exist
+		assert_noop!(
+			HousingFundModule::cancel_house_bidding(1,1),
+			Error::<Test>::NoFundReservationFound
+		);
+	});
+}
+
+#[test]
+fn cancel_house_bidding_with_valid_values_should_succeed() {
+	new_test_ext().execute_with(|| {
+		let fund_account_id = HousingFundModule::fund_account_id();
+
+		// Give the investor role to the accounts
+		assert_ok!(RoleModule::set_role(Origin::signed(1), 1, crate::ROLES::Accounts::INVESTOR));
+		assert_ok!(RoleModule::set_role(Origin::signed(2), 2, crate::ROLES::Accounts::INVESTOR));
+
+		assert_ok!(HousingFundModule::contribute_to_fund(Origin::signed(1), 40));
+		assert_ok!(HousingFundModule::contribute_to_fund(Origin::signed(2), 40));
+
+		assert_ok!(HousingFundModule::house_bidding(
+			1,
+			1,
+			60,
+			vec![(1, 30), (2, 30)]
+		));
+
+		assert_ok!(HousingFundModule::cancel_house_bidding(1,1));
+
+		assert_eq!(
+			HousingFundModule::fund_balance(),
+			FundInfo {
+				total: HousingFundModule::u64_to_balance_option(80).unwrap(),
+				transferable: HousingFundModule::u64_to_balance_option(80).unwrap(),
+				reserved: HousingFundModule::u64_to_balance_option(0).unwrap(),
+			}
+		);
+
+		assert_eq!(
+			HousingFundModule::contributions(1),
+			Some(Contribution {
+				account_id: 1,
+				available_balance: HousingFundModule::u64_to_balance_option(40).unwrap(),
+				reserved_balance: HousingFundModule::u64_to_balance_option(0).unwrap(),
+				contributed_balance: HousingFundModule::u64_to_balance_option(0).unwrap(),
+				has_withdrawn: false,
+				block_number: 1,
+				contributions: vec![ContributionLog {
+					amount: HousingFundModule::u64_to_balance_option(40).unwrap(),
+					block_number: 1
+				}],
+				withdraws: Vec::new()
+			})
+		);
+
+		assert_eq!(
+			HousingFundModule::contributions(2),
+			Some(Contribution {
+				account_id: 2,
+				available_balance: HousingFundModule::u64_to_balance_option(40).unwrap(),
+				reserved_balance: HousingFundModule::u64_to_balance_option(0).unwrap(),
+				contributed_balance: HousingFundModule::u64_to_balance_option(0).unwrap(),
+				has_withdrawn: false,
+				block_number: 1,
+				contributions: vec![ContributionLog {
+					amount: HousingFundModule::u64_to_balance_option(40).unwrap(),
+					block_number: 1
+				}],
+				withdraws: Vec::new()
+			})
+		);
+
+		assert_eq!(HousingFundModule::reservations((1,1)).is_none(), true);
+
+		// Check the amount reserved for the account
+		assert_eq!(
+			Balances::reserved_balance(&fund_account_id),
+			HousingFundModule::u64_to_balance_option(0).unwrap()
+		);
+
+		let event = <frame_system::Pallet<Test>>::events()
+			.pop()
+			.expect("Expected at least one EventRecord to be found")
+			.event;
+
+		assert_eq!(
+			event,
+			mock::Event::HousingFundModule(crate::Event::FundReservationCancelled(1, 1, 60, 1))
+		);
+	});
+}
+
 #[test]
 fn fund_info_contribute_transferable_should_succeed() {
 	new_test_ext().execute_with(|| {