Summer Retainer for Student House

Borbsy

Hi all, I'm renting out a student house next year, just needed some advice on the legality of a 'summer retainer'.

When we initially decided on the house we paid a holding deposit of £75, we were then informed of two additional payments due later in the year. £350 deposit and £350 summer retainer (for which we paid £275  as they kept our holding deposit), both of which are equivalent to a months rent. The summer retainer is for the months of July/August, we are unable to live in the property for this time although we are allowed to store our belongings should we wish. Our tenancy agreement reads as follows, the summer retainer is '.. the landlords commitment to the tenants that he will hold the property/withdraw from the market and the tenants commitment to the tenancy application.'
The start date for our tenancy within our agreement is 1st September 2020.

Would this charge be deemed illegal as it does not fall under one of the permitted payments in the Tenancy Fees Act 2019, and as such is it worht attempting to claim it back or is the agent justified to charge this.
Thanks in advance.

sharp910sh

A summer retainer is not legal. You should not pay that and report them. Only charges which are allowed are:

• rent
• a refundable tenancy deposit capped at no more than 5 weeks’ rent where the total annual rent is less than £50,000, or 6 weeks’ rent where the total annual rent is £50,000 or above
• a refundable holding deposit (to reserve a property) capped at no more than 1 week’s rent
• payments associated with early termination of the tenancy, when requested by the tenant
• payments capped at £50 (or reasonably incurred costs, if higher) for the variation, assignment or novation of a tenancy
• payments in respect of utilities, communication services, TV licence and Council Tax
• a default fee for late payment of rent and replacement of a lost key/security device giving access to the housing, where required under a tenancy agreement

A summer retainer is not included, do not pay this. I can assume they may ask you for a 12 month contract, but at least you have full access to the property, rather than this "allowed to store our belongings" thing. 

greatcrested

Identical question here

https://forums.moneysavingexpert.com/discussion/comment/77145537#Comment_77145537

silvercar

This student landlord needs to catch up with the change in laws on fees and deposits. Though the bottom line is that he will probably call it rent, tell you that you can live there and then give you advance warning that he will be doing maintenance at that time.
At the end of the day, the annual rent will be the same, how it is described will just change. Landlords have their business models and changing around with wording to comply with legislation won't change the model.