Agency won't return house deposit even though we never moved in

dmanaj90

Hi Everyone,

Been reading the forum for a long time, but this is my first post.

My parents were looking to move to a new property and placed a one months rent deposit to move into a house at the end of this month.

However in the end, their current landlord lowered the price of their current house, and they instead decided to stay at the current house.

When they tried to get their deposit back, the agency said they had 'blocked' the house and due to this they haven't been able to advertise it to anyone else, and said they would hold the deposit as payment until someone else moved into the flat.

My parents didn't sign any contracts or anything. Shouldn't they just be able to get the money back?

Many thanks for any help,

Dman

hcb42

why did they pay the money and not sign contracts? I moved into rented this week and the two went hand in hand.

I did also pay an admin fee several weeks earlier, which I accept I probably would have lost if I did not hold up my end of the bargain

dmanaj90

They didn't sign anything as one of my parents friend knew someone at the agency, and it was worked through word of mouth.

Kynthia

Has the deposit been protected as you could claim it back from the deposit protection scheme? Or you could write a 'letter before action' to the agency giving 14 days to return the monies before you take them to small claims court.

scottishblondie

Kynthia wrote: »

Has the deposit been protected as you could claim it back from the deposit protection scheme? Or you could write a 'letter before action' to the agency giving 14 days to return the monies before you take them to small claims court.

I don't think it's that kind of deposit. It sounds like a holding deposit, to guarantee that the agency wouldn't give the property to someone else.

dmanaj90

It was a holding deposit, so the house wouldnt be given to anyone else.

thegirlintheattic

dmanaj90 wrote: »

It was a holding deposit, so the house wouldnt be given to anyone else.

In which case there is likely only to be a verbal contract, and you've admitted what you knew it was for. They have upheld their part (not advertised it to others and held it for your parents), just because your parents have changed their mind doesn't mean the money comes back to them.

pmlindyloo

Holding deposits are not usually returned unless it is the landlord who stops the tenancy going ahead.

If the agents are saying that they will return it once they have new tenants then I shouldn't complain ! Just wait until this happens.

Fire_Fox

How long was the property held for before your parents pulled out? A day, a week, a month?

makeyourdaddyproud

Holding deposits are not usually returned unless it is the landlord who stops the tenancy going ahead.

Surely they can only hold the money until they rent out the property?

I would forewarn them that you intend to recover the amount through the small claims' court. It doesn't sound legitimate to me.

I am guessing there are strict rules that have to be followed for an agency to retain the right to keep deposit money and not return it.

Drop a call to ARLA, and see what they say.

Don't give up.

Regards.