Some of the terminology involved in renting or letting a property can sometimes seem confusing, but at Belvoir, we aim to make everything as clear as possible! One term that often puzzles prospective tenants searching for their dream home is seeing property listings with the words “Let Agreed” next to them.
What exactly does “Let Agreed” mean? Does it mean the property is no longer available? And what is the difference between a Let Agreed property and a Let property? Keep reading, and we’ll clarify everything about this stage in the letting process.
What is the Difference Between Let Agreed and Let?
In simple terms, there is a significant difference between a Let Agreed property and one fully Let.
- Let Agreed: This means a prospective tenant has shown serious interest in the property and has made a verbal agreement to rent it. The landlord or letting agent has accepted this offer in principle. To reserve the property, the tenant is required to pay a refundable holding deposit, capped at no more than one week’s rent under current tenancy laws. This deposit protects the property during the referencing and verification process.
- Let: A property is fully Let once all formalities are completed. These include referencing checks, signing of the official tenancy agreement, and deposit payment. At this point, the property is officially off the property market, and the keys are handed over to the tenant.
What Happens to the Holding Deposit?
A holding deposit protects both the landlord and the tenant during the initial rental process. However, tenants often wonder what happens to this deposit if the rental agreement doesn’t proceed.
- Refundable in Some Cases: If the landlord decides not to proceed or an agreement isn’t reached by the deadline for agreement through no fault of the tenant, the holding deposit will be refunded.
- Partially Retained: If a tenant provides false or misleading information, fails a Right to Rent Check, or does not respond to reasonable requests for information, the landlord or letting agent can legally retain a portion of the deposit to cover their costs.
Once the property is fully Let, the holding deposit is usually credited towards the tenant’s first month’s rent payment or as part of the security deposit, which is often safeguarded under a deposit protection scheme.
What Does Let Agreed Mean for a Tenant?
Before a Let Agreed property can progress to the next stage, the letting agent will conduct several checks to warrant that:
- The tenant is who they claim to be (through legal documents such as ID and proof of address).
- The tenant has the legal right to rent in the UK, including passing immigration checks.
- The tenant can afford the rent (using proof of income such as pay slips or bank statements).
When considering a rental agreement, landlords often conduct credit checks to assess the financial reliability of potential tenants. In some cases, references may also be required from previous landlords to confirm the tenant’s history with rental payments and absence of unpaid rent issues.
Once these checks are satisfactorily completed, and both parties agree to the rental terms, the tenancy agreement is signed. Only then is the property officially classified as Let, and the tenant can prepare to move in.
Can Properties Marked Let Agreed Fall Through?
Yes, properties marked as Let Agreed can fall through, and there are a few common reasons why:
- Failed Checks: A tenant may fail referencing or credit history checks, or their guarantor might not meet the requirements.
- Change of Mind: Either the tenant or the landlord may decide not to proceed with the agreement.
- Unforeseen Circumstances: Occasionally, logistical or legal issues may arise, preventing the agreement from being finalised.
If a property you’re interested in is marked as Let Agreed, it’s worth expressing your interest to the letting agent. They may keep you on a waiting list or notify you if the property becomes available again.
Should You Pursue a Let Agreed Property?
If you come across a Let Agreed property that you love, it’s worth making an inquiry with the letting agent, but manage your expectations. These properties are usually very close to being fully Let, so it’s better to continue your search while staying informed about the property’s status.
So does Let Agreed mean the property is off the market?
If you see a property marked as Let Agreed, it generally means the property is reserved and unlikely to be available unless the rental process falls through.
At Belvoir, we recommend focusing your search on other potential properties instead of waiting for a Let Agreed listing to become available again. If you’re particularly interested in a specific property, ask the property manager or agent if they can notify you should it re-enter the market.
Expert Tip from Belvoir
When searching for your next rental home, speed is often key. If you find a property you love, act quickly to register your interest with the letting agent to avoid missing out. At the same time, make sure you have all the necessary documentation ready, including contact details, proof of income, and references, to streamline the referencing process.
If the property requires updates or repairs before your move, confirm that any safety regulations—such as those requiring a qualified electrician to inspect the wiring—have been addressed before signing the agreement.
Frequently Asked Questions About Let Agreed
Q: Can I still view a property marked as Let Agreed?
A: No, once a property is marked Let Agreed, it is generally reserved and not open for further viewings.
Q: Does Let Agreed mean the property is legally Let?
A: Not yet. Let Agreed is a provisional stage. The property is only legally Let once all checks are completed, agreements are signed, and payments are made.
Q: What should I do if a Let Agreed property falls through?
A: Contact the letting agent immediately to express your continued interest. Be ready to act quickly if the property becomes available again.
Explore Our Tenant’s Guide to Renting
Now that you understand what Let Agreed means, you may find our Tenant’s Guide to Renting a Property helpful. This comprehensive guide covers everything you need to know about securing your next rental home.
For further information, the Government’s How to Rent: Checklist for Renting in England is an excellent resource for both tenants and landlords.
Letting Made Simple with Belvoir
Ready to find your next rental property? At Belvoir, we pride ourselves on being the best letting agents, making the rental process smooth and stress-free for tenants and landlords alike. Discover your next rental home by exploring our available properties today.
