Holding deposit given... Now being asked for more rent

Dreamcatcher29

Hi,
I think I know that there is probably nothing illegal with this but I was hoping for some advice anyway, as I'm a bit peeved.
My partner and I have been looking at properties to rent for over two months now, we viewed some properties on Thursday and finally found something suitable within our price range. At the time of viewing, the property was up for £770 per month. We were both happy with this and called the letting agency at 9am on Friday morning to let them know we were interested, and they said they would speak to the landlord and if they were happy to proceed, would take a holding deposit until the references came through. They called us back within a couple of hours saying that there had been a mistake, and the landlord has actually wanted to advertise the property at £785 and if we wanted to proceed this would be the cost of the rent. We were slightly miffed but agreed without any argument as it was still a reasonable price for the flat. They took a £400 holding deposit from us that day and we completed the paperwork giving our information and permission to carry out all of the necessary reference and credit checks.
Several hours later we then get a call to say they have since had other people round to view the property who have now offered £800 a month, and that we would need to match their offer. This has annoyed us both, as although it is not a huge amount it is more than we would have considered for this particular flat, and we are not prepared to enter a bidding war when our offer was already (verbally) agreed and a holding deposit taking. I feel cross because I feel that advertising for this property should have ceased as soon as our money was handed over. (Indeed, there have been a number of occasions in the past couple of months where other agents have cancelled our viewings of other properties because someone else had already put in an offer). I assume because the tenancy agreement has not yet been signed, there is nothing we can do? (Presumably we get our holding deposit back?) but I would like to know where to take things further if this agency/landlord have gone against regulations. So far we have left it that we would contact the agency on Monday (if we want to go ahead with the rental at this price or not) and have obviously let them know we are less than impressed.
Any advice greatly appreciated
Sophia

G_M

I suspect that as there is no signed contract the rent can be altered.

However, the holding deposit you paid was clearly in relation to a property at the rent you agreed, so you should get that back, in full, together with any other fees you've paid (eg referencing).

Are they offering to return everything?

Having said that, it is pretty unprofessional. I'm not sure what the code of practice says - check which scheme the agent belongs to, and read up their COP


Since 1st October 2014, the Enterprise and Regulatory Reform Act 2013 S83 requires letting agents in England to sign up to one of 3 schemes:

* The Property Ombudsman
* Ombudsman Services Property
* Property Redress Scheme

Dreamcatcher29

Thanks for the quick reply, there has been no mention of returning our money yet, as we wanted to discuss with each other whether we would still want the flat at that price, and they rang us just before closing so we won't be able to give them an answer until Monday. We have since decided we will say no to the higher rent, which will mean we will most likely lose it to the people offering more. Hopefully there won't be an issue with returning our deposit but it's more the unprofessionalism that I'm angry about (especially as we had cancelled other viewings for today, thinking that we had found somewhere, and don't have another day off for over a week before we can start viewing other properties). I will definitely look into their code of practice and voice my complaint, thank you :-)

Tryingtomoveout

I would definitely withdraw the offer, look for somewhere else and let them feel the full wrath of my fury. You can definitely get your deposit back, if not you should take them to the financial ombudsman.

I would have probably backed out when they called back and upped the price initially due to an "error"

Good luck hope it works out for you

stator

Tryingtomoveout wrote: »

I would definitely withdraw the offer, look for somewhere else and let them feel the full wrath of my fury. You can definitely get your deposit back, if not you should take them to the financial ombudsman.

I would have probably backed out when they called back and upped the price initially due to an "error"

Good luck hope it works out for you

I wouldn't "withdraw the offer". I would tell them that you are happy to go ahead at the amount agreed when the deposit was paid and that if they are withdrawing from the agreement you expect the deposit to be repaid immediately.

Dreamcatcher29

I have checked the property ombudsman website which states that if an applicant has been agreed in principal, then the agency should inform them in writing whether or not the property will still be marketed, and if any more viewings are to be carried out. We have an email which states that marketing will cease on receipt of the holding deposit. My partner was told before we gave the holding deposit that there were more viewings over the weekend, but there nothing was mentioned after we handed over our money, and the property is still being advertised on right move. Have they broken any rules here?

G_M

Sounds like they have broken the rules.

Quote the rules and demand they act accordingly.

( assuming of course they are signed up to the property ombudsman scheme)