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Student Rents again! - Sorry.

Petsitter
Posts: 15 Forumite


Student Rents again! - Sorry.
A month ago Martin was on TV saying that students may not be forced to pay the final term's rent "In most cases, the CMA would expect businesses to offer refunds where they cancel bookings or don’t provide any services, or where consumers are not allowed to use them because of lockdown restrictions.” As the gov had asked everyone to return to primary residences and they had advised students to return home my daughter couldn't use her accommodation due to lockdown restrictions. She withheld payment as the CMA states “will normally allow the consumer to withhold payment for services that are not provided by the business or which the consumer is not allowed to use because of Government public health measures;”
Has anyone tried this approach and had success? Her landlord's solicitor has replied saying she must pay and he is charging her interest for the late payment.
A month ago Martin was on TV saying that students may not be forced to pay the final term's rent "In most cases, the CMA would expect businesses to offer refunds where they cancel bookings or don’t provide any services, or where consumers are not allowed to use them because of lockdown restrictions.” As the gov had asked everyone to return to primary residences and they had advised students to return home my daughter couldn't use her accommodation due to lockdown restrictions. She withheld payment as the CMA states “will normally allow the consumer to withhold payment for services that are not provided by the business or which the consumer is not allowed to use because of Government public health measures;”
Has anyone tried this approach and had success? Her landlord's solicitor has replied saying she must pay and he is charging her interest for the late payment.
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Comments
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Does your daughter receive a student loan? if so then that was still paid in April as normal. When a contract is signed a tennat is liable to pay for the whole of those months. The landlord still has a mortgage to pay.
1 -
I think there is a distinct difference between University accommodation (particularly on campus) and student accommodation that is rented in the private sector. I understand the argument in some cases if the University has closed the campus and they have cancelled providing services, it could be extended to interpret that as closing the accommodation also (but not guaranteed).
In the case of a private landlord, they have not cancelled or failed to provide a service and the consumer is not prevented from using the accommodation because of lockdown. You say your daughter followed advice to return to her primary residence, and that was interpreted as being to return "home" (I assume you mean the family parental home?). There could be a case that the student's primary residence is their term address as that is where the individual resides for the majority of the year (for a full time course at least 30 week of term time out of 52 weeks in the year). Many students also choose to stay in their University accommodation even out of term time.
It is difficult to see that either of the criteria to withhold payment have been met:- services that are not provided by the business, or
- not allowed to use because of Government public health measures
Did your daughter just withhold the payment, or did she have a conversation and reach agreement with the landlord first?
The terms of her contract still stand and have not been frustrated or voided by coronavirus.
Is there a guarantor for the rent? It is likely this will be pursued against the guarantor if the student (your daughter) does not fulfill her obligations under the contract.
Is your daughter and any guarantor willing to risk impacts to credit rating?
Has your daughter been financially impacted by coronavirus, giving her a stronger case to argue hardship and 'unable to pay' rather than 'won't pay'? Student finance (loans) were still paid as per usual.
You don't mention in your post, but as parents, you may have been impacted going from full pay to furlough. That is you though, and not your daughter.
Could your daughter still attend and enter the accommodation and could she have done so throughout? Does she still need this accommodation when the summer term re-starts?
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As above, in student halls you may have a small chance pleading with the university. If it's a private letting (which it sounds like it is), then not a chance. She's not really viewed as a "student" in that respect - albeit not having to pay council tax. Unfortunately contract would still apply, and even worse for your daughter having withheld her final rent as it would mean the landlord is eligible to charge her a late penalty as outlined in the contract.1
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