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Thanks Dee, Leandri and Whightgal for all your comments. I had emailed the guest to inform them they had to pay a deposit by a certain date as their booking is for December which is our busy time of the year. I therefore cannot wait till 48 or 24 hours before they arrive to cancel, I loose out on other guests that are waiting to book. As I had not received the guests deposit by the date requested I sent another email giving them a little more time and asking them to reply to my emails. They have done neither. I then did go and click on Cancel Reservation. But the calender remained blocked. If it is still blocked tomorrow I will contact Bookings.com.
Thanks for all the help.