Some of the terminology involved in renting or letting a property can seem a bit confusing at times, but at Belvoir we try to make everything as clear as possible! One thing that can seem confusing to a prospective tenant who is looking to rent their dream home, is seeing property details with the words Let Agreed next to them. What exactly does Let Agreed mean? And if a property is marked as Let Agreed does it mean it is now off the market and no longer available? What is the difference between a Let Agreed and Let property? Read on, and we’ll try and clarify the difference.
What is the difference between Let Agreed and Let?
In simple terms, there most certainly is a difference between a Let Agreed and Let property. Let Agreed means that a tenant has shown serious interest in a property, and has put in a verbal offer to rent it. This initial offer will have been accepted in principle by the landlord or letting agent, and as a demonstration of the tenant’s commitment, the tenant will have been asked to pay a refundable holding deposit to reserve the property, whilst the necessary referencing checks are carried out. A holding deposit is capped at no more than one week’s rent for Assured Shorthold tenancies.
Refunding holding deposits
A holding deposit will be refunded to the tenant if a landlord changes their mind and decides not to rent out the property or an agreement is not reached before the ‘deadline for agreement’ where the potential tenant is not at fault. However, a proportion of the holding deposit that is appropriate to the amount of work already carried out can be legally retained by the agent. if the tenant provides false or misleading information, fails a Right to Rent Check, decides not to proceed with letting the property for some reason, or fails to take all reasonable steps to enter an agreement, i.e. responding to the agent’s reasonable requests for information etc. Once a property has been let, the holding deposit will be credited against the tenant’s first month’s rent.
Before a Let Agreed can be finalised, the agent will need to conduct all the necessary referencing and credit checks etc to ensure that a potential tenant is who he or she says they are, has the legal right to rent a property in the UK, and is able to afford to pay the rent each month. Once all of those checks have been conducted, the landlord and letting agent are satisfied with the results, and the tenant has agreed to all the terms and conditions associated with renting that property and the agreed let will be able to proceed to completion. A tenancy agreement will then be drawn up, signed by all parties and the keys handed over ready for move-in day.
So does Let Agreed mean the property is off the market?
It should be noted that not all lets that have been agreed in principle will proceed to completion, but the majority will do. If a potential tenant notices property details with the words ‘Let Agreed’ next to it, it is better to start looking for another property, or ask the letting agent if it is possible to be put on a waiting list should that particular property come back onto the rental market for some reason in the future.
Find out more…
Now that you know what Let Agreed means, you might also enjoy reading our Tenant’s Guide to Renting a Property.
For even further information on renting a property, check out the Government’s How to Rent: the checklist for renting in England, which can be found here: https://www.gov.uk/government/publications/how-to-rent/how-to-rent-the-checklist-for-renting-in-england