Letting agent misrepresented flat; can I reclaim my deposit/fee?

Psychonaut

A few weeks ago I was looking for a new flat to rent for myself. A letting agency showed me a property and said that there was nothing wrong with it, and that the reason the current tenants are leaving is because they just had a baby and need a bigger place. So I applied for the flat, which involved a fee of about £300, of which about £200 was their fee for reference checks, and £100 to be applied towards the rental deposit. They performed the reference checks and told me that my application was accepted. The actual rental contract won't be signed until I move in in a couple weeks.

Last week I went to the flat to take some measurements for my furniture. The current tenants let me in, and told me that they were surprised I took the flat because of the problem with the neighbour. "Oh, didn't the letting agency tell you?" they said. "There is a psychotic woman who lives next door who rants and screams all day, and plays music so loud the walls shake. We are leaving the flat because we can't stand it any more." They also mentioned that a few fixtures in the flat need repairs, though that doesn't concern me as much, as the letting agency ought to fix them.

Needless to say, the neighbour issue concerns me a great deal; I wouldn't have taken the flat if I had known about this problem. The current tenants implied the letting agency was aware of the problem; however, the agency did not disclose it to me before I made the application, and indeed, if they really were aware of the problem, they lied about it to me when I asked why the current tenants were leaving. With this in mind, would I be entitled to claim back my £300? Has the letting agency done anything illegal?

adg1

They have not misrepresented the fabric of the flat so you would not get your deposit back if you pull out.

They didn't tell you about a noisy neighbour, thats all.

On the flip side, you say you've not signed a tenancy agreement as yet hence there is no legally binding tenancy in place.

You can walk away from your £300 if its that big an issue?

Psychonaut

adg1 wrote: »

They have not misrepresented the fabric of the flat so you would not get your deposit back if you pull out.

Why should it matter whether the misrepresentation was about the fabric of the flat rather than some important environmental factor which impinged upon the occupier's enjoyment of the home? If the flat happened to be located in say, a heavily polluted area, then surely they would have an obligation to disclose that?

They didn't tell you about a noisy neighbour, thats all.

It's not just that thy neglected to tell me; it's that they apparently actively lied about it when I asked why the current tenants were leaving. The tenants are leaving specifically because of the noise, and not because they have a baby and want a bigger flat. That's deception, not omission.

terryw

A difficult one. How do you know that the current tenant is not misleading you rather than the agent?

olly300

Did you specifically ask the letting agent about the neighbours? Did you make a diary entry or have a witness who saw the flat with you who can vouch this?

If not, then there is no misrepresentation and you have to risk losing your £300 if it's true.

princeofpounds

Renting is not covered by the property misdescriptions act so there is no statuory comeback. There might be some general unfair trading issue, but how you prove they lied to you without various forms of evidence I don't know.

Best thing to do is to pull out, ask for your deposit back if you like. They probably won't give it to you, so you might want to threaten them with a complaint to trading standards and you might get it back because they can't be bothered to go through that process. But in the end they can keep the money and TS are unlikely to be that interested.

£300 is a small price for 6 months of peace.

Do check that the situation you are worried about is really true though - neighbours can have their own motives. See if you can contact the old tenants.

Psychonaut

terryw wrote: »

A difficult one. How do you know that the current tenant is not misleading you rather than the agent?

Good point—I don't know for sure, though the letting agency does have an obvious financial motive in renting the flat, whereas the current tenants don't have an obvious motive for lying to me. I think it's therefore reasonable to assume for the time being that it's the tenants who are being honest.

Psychonaut

olly300 wrote: »

Did you specifically ask the letting agent about the neighbours?

I did not ask specifically about the neighbours. I asked specifically if there were any problems with the flat and if that's why the current tenants were leaving, and in response was (if the current tenants are to be believed) lied to in order to cover up the problem with the neighbours.

Did you make a diary entry or have a witness who saw the flat with you who can vouch this?

Yes, and yes. And also the current tenants will still be there for a couple weeks, so I could always go back to them for further information.

terryw

Psychonaut wrote: »

Good point—I don't know for sure, though the letting agency does have an obvious financial motive in renting the flat, whereas the current tenants don't have an obvious motive for lying to me. I think it's therefore reasonable to assume for the time being that it's the tenants who are being honest.

There are many reasons why the current might mislead you. She might have a grudge against the so-called antisocial neighbour, who might in turn be a lovely individual who is pleased beyond belief that the current tenant is leaving. Many other reasons spring to mind.

Could you not try to have a word with said neighbour? Knock on her door and ask some advice about the area...the nearest and best pub, chip-shop, anything. If she is OK then rethink. If she is a "nutter" then leave well alone and get on with your life.

Having said all of that, I concur with the other posters that obtaining the full amount back from the agents will be difficult, and the chances of winning a court case remote.

Psychonaut

terryw wrote: »

There are many reasons why the current might mislead you. She might have a grudge against the so-called antisocial neighbour, who might in turn be a lovely individual who is pleased beyond belief that the current tenant is leaving. Many other reasons spring to mind.

Oh, of course—I acknowledge it's quite possible the current tenants have reason to mislead me. It's just that, in the absence of any evidence for a motive for this, I would operate under the assumption that they are telling the truth. The letting agency, of course, already has quite a strong incentive for getting me into the property, which doesn't mean they are actually deceiving me, though it does mean I have, at present, much more reason to be suspicious of their claims than those of the tenant's. Until further evidence is forthcoming I am more inclined to believe the tenant than the agency.

Could you not try to have a word with said neighbour? Knock on her door and ask some advice about the area...the nearest and best pub, chip-shop, anything. If she is OK then rethink. If she is a "nutter" then leave well alone and get on with your life.

Another good idea... I think this may be worth doing.

MissMoneypenny

This is why it is always worth going back to a property you are interesting in and talking to the outgoing tenants when the estate agent or landlord isn't there. Estate agents lie: or in this case, don't tell the whole picture. We see plenty of threads on here from people who are going to move and rent out their property as they are having problems with the neighbours.

Yet again, UK renting laws are behind out many of our European cousins where the landlords' are required to reduce the rent if the tenants' suffer.

Not much help to the OP now, but I don't think I would want to move in either. I doubt that would bother the EA though as they will just keep trying to rent it out and keep the deposits.

Have you checked to see the landlord has Consent to Let from their mortgage lender? The estate agents should not be taking money (your deposit) if this consent is not in place and will have obtained by deception.