What happens when a holding deposit doesn’t hold up?

It is very difficult to generate publicity about bad practice by dodgy dealers in the property market. The local newspapers will not touch it because their advertising revenue is at stake. The trade is notorious for its barrow-boy behaviour and people have lost their sense of disgust at their disreputable practices. Hopefully, bringing it to light here and in other responsible media will alert people, but as Adam has explained, prospective tenants are on the back foot in their relationships with letting agents and dare not upset the market manipulators as it might doom their future prospects.

I strongly agree with Patrick’s second and third points because the London property market is tailor-made for exploitation by the unscrupulous and there are few defences available other than leaving it. Companies and other organisations should do themselves and their staff a favour by preparing to go now before hiring good staff with contentment with their living arrangements becomes impossible and salaries are driven over the edge of sustainability by high rents and loan repayments.

I cannot offer any useful comment but it adds realism when Which? staff talk about their unfortunate experiences, especially familiar faces such as Adam who has provided many Conversations.

I hope that others will come along and share their stories.

The lack of actual evidence as to what the holding deposit entitled you to seems to be part of the problem. I suggest anyone in the same position records the meeting with the agent and obtains a firm commitment that the deposit will secure the property at the agreed rent. If the agent reneges on the agreement you then have evidence that you could perhaps use in the small-claims court. If the agent won’t agree to you recording them then definitely walk away.

Why not go in to the letting agent’s office and get paperwork and signed papers confirming the holding of the flat? In that case, they should be able to ensure that no “mistakes” are made.

I would sue the letting agent. They have a fiduciary duty, and they cause economic damage when tenants miss other properties due to this.

The best revenge against letting agents is to look up the owner of the property in the land registry and contact the landlord directly, and offer to pay the letting agent fees to the LL, in return for signing the lease directly. And mentioning about all the letting agent’s semi-criminal incompetence to the LL.

Until and unless a system whereby the seller/landlord once deposit is paid cannot go back on his word/promise unless he/she is compelled to pay back to the potential buyer/tenant double the deposit received (a system that I believe exists in Scotland and all over Europe), this kind of incident will carry on happening.

My son and three other students were persuaded to part with £1400 reservation fee to hold a property after being assured that it would be returned if the landlord changed his mind. This was after being asked to stump up £20 more per week in rent as other prospective tenants had offered more. A month later whilst waiting for the tenancy agreement to come through, the letting agent contacted them to say that the landlord now wanted £10 more per week in rent as he wanted to recoup his decorating costs! The students refused and asked for their reservation fee to be returned which they were assured would be as the landlord was adamant that he would not accept anything less. Despite the agent setting up new viewings for them which gave them further reassurance that they were no longer bound to this property and the promise of the return of the fee in phone calls and texts, the money was never paid back. The property was then readvertised by the agent (which I have proof of) so clearly it was not being reserved for the students any longer. The students then found another property with another agent. When they revealed this to the letting agent he then said that the landlord was now accepting their offer and the reservation fee would not be returned. This is sharp practice on a group of young people who have no experience of renting and were naive and trusting. They also cannot afford to lose such a large sum of money. I am currently trying to help them get the money back and am waiting for the 8 weeks before I can approach the redress system which btw I had asked the letting agent for information on but which was not forthcoming. Had to do quite a bit of research to find out this information. Not sure whether the redress system is going to help get the money back but I will go all the way with this as I am fairly fed up with the amount of ripping of f going on at the moment.