Help needed - Letting Agent insisting I use No Deposit Option

Octavarium

Hi all, I'm having real difficulty. I have finally found a new place to live that is the dream place for me. I am due to move on August 21st.

However a bombshell has been dropped on me today. I have the money for a deposit and I want to pay in full. The agency, Leaders, are insisting that I must go on the No Deposit Protection scheme because it gives the Landlord 7 weeks protection instead of the capped 5 under the traditional deposit.

I cannot post a link as I am new here. Please google search No Deposit Option Leaders. They come up first on google when I searched for no deposit.

To the best of my knowledge, I thought that the No Deposit Option is purely just paying 1 weeks worth of rent. And its 6 weeks protection, not 7. And usually, you do not sign up to memberships that give discounts, increases to credit rating for paying rent on time etc.

I have some serious questions for the agency but I need to know where I stand first. I do not want to lose this maisonette through having an argument, or being factually incorrect.

1) Can letting agents force you to use the NDO?
2) Is it lawful for them to refuse my tenancy if I do not want to go down this residence members route. I'm going to be paying £36 a month for things I don't need or want!

This, to me, smacks of them abusing the No Deposit Option to make money for themselves, and possibly their clients - the landlords. But I've been told that both agent and landlord insist on me being on this membership.

I've never encountered this before when renting as I've always had the money up front. 

Your help is really appreciated. I am worried that I am in a tough spot. Any suggestions on how I can word things to the agency without facing trouble, are much appreciated.

Thanks
8v

dimbo61

If you Google No deposit leaders and click on the 4&5 articles down you can see what a rip off this is from a bunch of robbing bar stewards.
It's not an insurance policy and your still liable for any claims for damages at the end which the Lettings agents Leaders will quickly act on.
Paying £40/50/60 a month for nothing.
Great little earner 

dimbo61

Can you contact the landlord direct ?
Land registry will tell you who owns the property for £3 but make sure you go on the gov website !

rik111

Run as fast as you can, not just from the scheme but also from the agent as they will screw any chance they get. A decent agent doesn’t offer these sort of con artist schemes !

Wanderingpomm

This isn’t for the landlord it’s for the rip off fees they get. Say no! My letting agents said this and the landlord had just agreed with the agents, they didn’t worry either way 

anselld

dimbo61 said:

If you Google No deposit leaders and click on the 4&5 articles down you can see what a rip off this is from a bunch of robbing bar stewards.
It's not an insurance policy and your still liable for any claims for damages at the end which the Lettings agents Leaders will quickly act on.
Paying £40/50/60 a month for nothing.
Great little earner 

One of the articles also quotes Michael Cook, national lettings director for Leaders Romans Group
  “All of the properties Leaders offer for let can be secured with a traditional deposit."
.. so unless their policy has changed since then the OP should be OK with a traditional deposit.

Surprising that these schemes (scams?) don't fall under the Tenant Fees Act as they seem to be an underhand fee straight to the agent.

dimbo61

So go into the Letting agents armed with this information.
Tell them that Michael Cook Leaders national  lettings director has stated in writing that you can and will be paying a normal deposit.
If they is a problem with that you will be emailing Michael Cook direct and speaking to the Letting agents redress scheme with your complaint.
Stand firm 

Slithery

Although do bear in mind that the LL can refuse to rent to you for no reason, it's their choice.

NinjaTune

Romans aren't to be trusted.

https://www.gov.uk/government/news/estate-agents-fined-over-half-a-million-pounds-for-price-fixing

I rented through Romans once, never again.  Greedy company.

Octavarium

NinjaTune said:

Romans aren't to be trusted.

I rented through Romans once, never again.  Greedy company.

Oh my gosh...I never thought I would see the word cartel connected with letting agents. This is really bad

Octavarium

Slithery said:

Although do bear in mind that the LL can refuse to rent to you for no reason, it's their choice.

This is what worries me. A lot. I think my most reasonable action is to say something like

"I've read through the benefits,  thank you for sharing them with me. I already have a will, and the other services do not add value for me, especially as my Credit Rating is well above the national average.

I would prefer pay a full traditional deposit as I have the money there and available. However, if you are saying it is not possible to pay in full, I will pay 1 weeks rent up front, to be a part of the No Deposit Scheme with no perks."

How does that read? Can there be any recourse?