UK Landlord Forum / Life

Good afternoon everyone!

I just joined your forum and wonder if someone is able to help me.

- Mid December 2020 I signed electronically an AST agreement.
The date and time is automatically added when signing.

- Straight after I followed the landlord's letting agent instructions and within minutes I transferred 4 weeks tenancy deposit and 1 month rent in advance to them.
(They also a few days prior took a down deposit which is the equivalent to 1 week's rent but they do not name it a holding deposit, or 1 week down deposit, they just name it as a down payment).

- But the landlord did not sign electronically the AST agreement until the day after I signed it and made those payments!

Then 4 years + down the line ( my AST is now periodic) the landlord has now issued me with a no fault Section 21 Notice for me to leave the property.

From my internet research it seems that the S21 may be invalidated by the fact that:
- the landlord signed the AST agreement after receiving payment of deposit and rent in advance
- and after I the tenant signed the AST
- and may have to refund me the prohibited payments before issuing another S21.

Also my AST agreement mentions that I should pay the letting agent on the signing of the tenancy agreement the deposit and the rent in advance.
(It does not specify if I should make those payments on the signing of the tenant only or of both parties, conveniently it only says on the signing of the tenancy agreement).

My research online says my payments may constitute a prohibited payment and a breach of the Tenant fees Act 2019 as it may be considered as holding deposit exceeding the permitted amount.
That under the Tenant Fees Act 2019 any money taken before a tenancy agreement is signed is considered a holding deposit and must not exceed 1 week's rent.
 
That the deposit and rent are payments for the tenancy and that the tenant fees Act 2019 prohibits takings those payments before the tenancy agreement is signed and dated by both parties.

It also says that any payment made before the tenancy agreement is signed and is more than one week's rent is considered a prohibited payment.

And if a prohibited payment, it would mean the Section 21 notice I received is invalid and the prohibited payments or unlawfully retained holding deposit would have to be refunded to me the tenant before the landlord could issue me with an S21.

I would be grateful for anyone's input, comments about the problem I face.

Thank you very much.

Best wishes!

You suggest that "under the Tenant Fees Act 2019 any money taken before a tenancy agreement is signed is considered a holding deposit and must not exceed 1 week's rent."

It doesn't say that though. It says "before the grant of a tenancy", which isn't the same thing.

Your defence would depend on when the tenancy was granted, which I would suggest would be before the agreement was sent to you.

Even If not, I'd be amazed if the contract wasn't formed when you signed the agreement, normally the landlord's signature isn't needed - the contract wording would have to be quite specific on this point.

It's an interesting argument, and might be worth trying, but I'd suspect it has little chance of success.

When did you receive the Prescribed Information relating to the deposit?

I have often signed tenancy agreements a day or more after the tenant. You are trying to create some drama or wrongdoing where none exists. Nothing seems off about this.I realise it is not good having to uproot yourself, but that is an unavoidable part of renting rather than buying. Rather than forensically looking for loopholes, accept that you will have to leave sooner or later, and spend that time finding somewhere else to live. A lot of landlords are feeling forced to sell up, yours may be among them.