HELP Lettings agent refusing to return holding deposit

Well02

Hello all.

I'm hoping somebody might be able to offer some advice about a situation that I have found myself in.

I put forward an offer to rent a property a few weeks ago. I opted for the zero deposit scheme, which was clearly stated on my offer form. My offer was accepted by the prospective landlord and I was due to move in at the end of this week. Fast forward to today, when I had already signed the tenancy agreement and paid this month's rent, to my shock and horror, I got a call from the letting agent saying that the landlord wouldn't sign the agreement as he was expecting to receive the traditional 5 week deposit. 

I categorically cannot pay a five week deposit, as I have already spent that money on something else and had already budgeted for this month's expenses. When I explained this to the letting agent he became very pushy and asked whether I could ask around for this additional money. He even asked me whether I had any credit cards! By this point I felt that it would be better for me to pull out of the agreement as I felt that the landlord was acting irresponsibly by agreeing to rent the property to me and then demanding to change the tenancy deposit scheme before signing the tenancy agreement.

The letting agent has informed me that I would lose my holding deposit if I refuse to allow him to try and convince the landlord to agree to rent the property to me under the zero deposit scheme. Something that I am entirely unhappy about. I'd rather just walk away, but feel that as it is the landlord that wants to change the terms of the tenancy agreement, I am within my rights to have my deposit refunded if I do not agree to said changes.

My question is- is the letting agents within their right to retain my holding deposit?

Thank you 

canaldumidi

Dear Mr agent,

As I continue to be keen to take up the tenancy for which I have paid a holding deposit, on the terms agreed at the time ie using the a zero deposit scheme, I am not 'withdrawing'.

Since the landlord appears to be now refusing to grant me the tenancy, kindly return my holding deposit in full, else I shall be forced to take legal action.

Yours sincerely,

Well02

Well02

Thank you so much canaldumidi. Will send them an email now. 

anselld

You state the agent will retain the deposit *if* you refuse to allow him to persuade the L to stick to the original deal.  That seems reasonable, why would you refuse?  If, on the other hand the Landlord refuses to honour the deal then as above.

Well02

Hi anselld.

It's because I recently had a really bad experience obtaining a reference from a landlord, despite having always paid my rent on time. I feel that the new landlord may feel as though they are being strong-armed into sticking to the original agreement. My main concern is the impact that this situation might have on me obtaining any future references. It just feels all wrong to me.

saajan_12

Well02 said:

Hello all.

I'm hoping somebody might be able to offer some advice about a situation that I have found myself in.

I put forward an offer to rent a property a few weeks ago. I opted for the zero deposit scheme, which was clearly stated on my offer form. My offer was accepted by the prospective landlord and I was due to move in at the end of this week. Fast forward to today, when I had already signed the tenancy agreement and paid this month's rent, to my shock and horror, I got a call from the letting agent saying that the landlord wouldn't sign the agreement as he was expecting to receive the traditional 5 week deposit. 

I categorically cannot pay a five week deposit, as I have already spent that money on something else and had already budgeted for this month's expenses. When I explained this to the letting agent he became very pushy and asked whether I could ask around for this additional money. He even asked me whether I had any credit cards! By this point I felt that it would be better for me to pull out of the agreement as I felt that the landlord was acting irresponsibly by agreeing to rent the property to me and then demanding to change the tenancy deposit scheme before signing the tenancy agreement.

The letting agent has informed me that I would lose my holding deposit if I refuse to allow him to try and convince the landlord to agree to rent the property to me under the zero deposit scheme. Something that I am entirely unhappy about. I'd rather just walk away, but feel that as it is the landlord that wants to change the terms of the tenancy agreement, I am within my rights to have my deposit refunded if I do not agree to said changes.

My question is- is the letting agents within their right to retain my holding deposit?

Thank you 

If the LA can convince them so the LL does agree to rent you the property with zero deposit, then they have fulfilled their end. You can either rent the property, or withdraw and lose the holding deposit. Your new concerns about the LL's future attitude don't affect this. 

If not, and if the holding deposit was given when the zero deposit was clearly offered, but the LL continues to refuse this, then yes you would be due your holding deposit back. 

Well02

Thanks Saajan_12.