LA charge for "renewal" onto a Statutory Periodic Tenancy

MouseTrap

Hi all,

Any advice on the below would be greatly appreciated. I would love to be able to quote some piece of legislation which I'm sure exists somewhere (and more knowledgeable people than me will know of) as to why the below charge is unfair.

We have recently moved out of a flat which we rented for almost 2 years. The initial rental period was 12 months, after which time we signed a letter to say that we would be staying on a statutory periodic basis. THIS LETTER DID NOT MENTION A CHARGE.

Upon leaving and requesting the deposit, the LA is now trying to charge us £60 for this "renewal". I have requested to receive the remainder of the deposit whilst this amount stays in dispute.

Our initial contract does contain a clause which states:

(6.12) Should the tenant renew this tenancy on either a statutory periodic or a fixed term the tenant shall be liable for an administration charge of £50.00 plus VAT payable at the time of renewal

I am disputing on the basis that I do not believe this to be a valid clause. An SPT is by definition not a renewal of contract, and how can a print out of a template letter possibly be worth £60? They're charging money for a "service" which would be exactly the same as if they did nothing at all.

Again, any help or advice as to what I should contain within my dispute would be greatly appreciated.

Thanks in advance!

FireWyrm

You're right to challenge this. Statutory Periodic Tenancy is just that, status quo, therefore no work has been undertaken. The LA cannot charge something for that which was not undertaken. I'd fight it....cheeky so and so's.

Zorz_2

You are right, this term is pointless. You can't "renew a tenancy on a statutory periodic" one.

You might want to read OFT's guide on unfair tenancy terms here:
http://www.oft.gov.uk/about-the-oft/legal-powers/legal/unfair-terms/guidance#named6

The only issue I can see is that you signed this letter, there was no need to. I reckon they will try to claim this as a "renewal" or something. I assume you returned it back as a confirmation, is that correct?

MouseTrap

Yes the letter was signed and returned. It contains no reference to any charge and it was our understanding that we signed to indicate our willingness to remain at the property under a statutory periodic tenancy. Signing was a common courtesy and not an indication that we were willing to pay £60!

Fire_Fox

Are they a member of ARLA?

MouseTrap

I don't know what ARLA is, I can't see a reference to it on their documentation. The deposit is registered with The Dispute Service (TDS) though.

MouseTrap

Zorz, thank you I looked at the OFT guidance, and some guidance from TDS and sent a response quoting both. It was most helpful. Fingers crossed for a positive reply.

Manual_Reversion

I had the exact same situation as OP.

At the end of the tenancy I disputed the charge via the DPS and they initially upheld the LA demand for the fee.

In the end I had to complain to the head adjudicator at the DPS to get them to see the error of their ways, which they did and refunded the money to me.

So, if you stand your ground you will win in the end; I hope in your case the DPS reach the correct decision first time round.