Is the following a potential ruse to circumvent the No Fees legislation

  • Filter
  • Time
  • Show
Clear All
new posts

    Is the following a potential ruse to circumvent the No Fees legislation

    I met someone whilst on holiday who was intending to come and study in London , he coming from the Slovak country with fair to middling English.

    We discussed accommodation whilst he was staying in London and he said he would be doing the rounds of agents as he was to be joined at the end of September by a couple of friends. I cautioned him to beware of being taken for a ride given his innocence of what can happen with agents.

    Today he wrote asking if the attached Terms of Business were correct? The Agreement is from a "Consultancy organisation" but was according to its web site linked to a Letting Agency which also had links to other agents!!! The agreement covered the investigation of suitable accommodation , either on a house or room to let basis throughout London and included the negotiation of the rental and acceptance. All of which would require a non returnable fee of £1150. Clearly I have cautioned him against rushing into such a formal arrangement and it set me wondering if other Forum members had come across any similar situations ostensibly designed to circumvent the NO Fees legislation by Tenants.

    The "consultancy organisation" would seem to be proposing to do "things" in "the course of a business" in "response to instructions received from...a tenant who is seeking to find housing to rent."

    Which makes them a letting agent and, therefore, subject to the Tenants Fees Act.
    So I think it's a prohibited payment.

    Your friend should report the organisation to Trading Standards (and certainly not agree to it).

    If you send me a Personal Message with the name of the organisation, I'll have a bit of dig around.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


      Thanks JP will do PM


        I've been told it probably breaks the Accommodation Agencies Act 1953.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


          Looking at section 1 of the Act, I don't think there is much doubt. I was pretty sure this was illegal by old legislation yesterday, but all my Google searches were being swamped by results about the Tenant Fees Act.


            By way of an update, the person who contacted me was guided by some excellent advice preferred by JPKeates who PM’d me and distanced himself from progressing the matter, unfortunately he now appears to have got “caught” by another such operation where one of the business owners has recently been penalised by the authorities for failing to return deposit monies in another Lettings operation located in London. The terms of the agreement are almost identical to those of the original operation and given that they are requiring the deposit monies and one months rent before “concluding negotiations” with the rental agency strikes me with fear that this is an unlawful operation. I have again advised him to NOT to do this and to make direct contact with the actual agents. So it does seem that such practices are common in certain parts of London.


            Latest Activity


            • removal of letting agent
              by yeahremy

              another topic on this but apologies as i cant find my answer on the other ones.
              My letting agent messed up the check in and check out report. Basically they keep telling me to pay the deposit back without really checking the reports.
              2y ago I had new tenants who moved in...
              24-01-2022, 16:12 PM
            • Reply to removal of letting agent
              by yeahremy

              yes regarding the scheme but as soon as I raise a complaint by email, which party should launch the official complaint procedure.
              the estate agent is saying I have not requested the complaint form until now.
              Therefore, question is :when we do raise a complaint, this is...
              26-01-2022, 15:16 PM
            • Reply to New agent not paying landlord
              by DoricPixie
              I'm not sure I understand. Why would the letting agency want 4 months rent free? Is this one of these arrangements where you let the properties to the letting agency and the letting agency then sub-lets the properties to other people?
              24-01-2022, 20:43 PM
            • New agent not paying landlord
              by Cpark
              Folks I wonder if anyone can help me here, I have had the worst few years with my properties, the previous agents filled my properties up with delinquents and refused to pay the full sum, we lost 8 months of declining rents. Then was introduced to a new set of agents who really were impressive and opted...
              24-01-2022, 00:27 AM
            • Reply to removal of letting agent
              by Landyman
              Is this the same agent that you were complaining about in October 2018?


              I think the replies you received then are still applicable
              24-01-2022, 18:45 PM
            • Reply to No Rent received from Agent
              by Cpark
              Hi can you tell me how you’re proceeding I’m in a very similar situation thank you...
              24-01-2022, 00:32 AM
            • No Rent received from Agent
              by racer69
              Hi, all, my tenant left the property and handed the keys in on Dec 6th, that is when I normally get my rent from the agent or a few days after. As no such payment was forthcoming I went to the office after approx a week to see and was told they had been in and taken pictures of the poor condition of...
              21-12-2021, 20:47 PM
            • on resident landlord regisitration.
              by SandPit

              I am a non resident landlord. My letting agent has stated they are required to have 5 or more NRLs to register with the HMRC. Is this correct? Is there a fee to the letting agent?
              09-01-2022, 08:30 AM
            • Reply to on resident landlord regisitration.
              by SandPit
              Wanted to post a quick update in case this is useful for anybody else.

              There is no fee for the letting agent to register with HMRC to handle NRLs, all they need to complete the inline form.
              As soon as a letting has registered they need to start collecting tax on behalf of the HMRC....
              22-01-2022, 07:42 AM
            • Forwarding address enabled in CFP Winman
              by ethanlee
              I recently has some dispute with a property management agent about changing my correspondence address. I own a flat A and after a couple of years, I moved out to a house, but I still own that flat. After I moved out, I asked property management agent to change my correspondence address in their system,...
              20-01-2022, 14:38 PM