landlord changes mind after deposit and rent paid

[nunnyrose]

Hi, hoping somebody can advise here.

Friends are due to move to new rented property on 1st March, having given notice at current address.

3 months deposit + 1 months rent paid 2 weeks ago. No contract signed yet.

The renting agency have just contacted them to say the landlords circumstances have changed, the property is going to be sold and so it is no longer available to rent.

The Letting agent has say there is nothing they can do, that the landlord is within their rights to do this.

My friends are in effect homeless from 1st March. They have out of pocket expenses and their children's have already started at their new schools in the new neighbourhood.

The letting agent are unable to find an alternative property.

[Steve__M]

Unfortunately, in absence of a signed tenancy contract, either party can withdraw up to the date the tenant moves in (so I understand).

 

Note that they cannot be forced out of their current address without a court order. Though obviously this may impact the next tenants and result in them having to pay extra costs if eviction proceedings are undertaken.

[mariner51]

"Unfortunately, in absence of a signed tenancy contract, either party can withdraw up to the date the tenant moves in (so I understand)."

No Tenancy can exist until T occupies property (eg just by moving goods in) on/after agreed start date. However, it has been suggested that an unwritten Contract to supply/occupy exists if deposit/rent was paid in advance and accepted. This should mean if one side withdraws before appointed move in date, the other party could claim consequential loss for breach of contract provided loss is mitigated. In this case, T could sue for cost of alt accom in basic hotel/B&B (for say 7 days) and cost of T application for new property. Of course, the 3 month deposit, 1 month rent in advance and fees paid should also be returned in full, without delay, or added to the claim. Since the Ts have given NTQ to LL, it would normally terminate the T on the expiry date, but it would be worth asking present LL if he would allow them to stay for a further month (explain prob) if no new Ts are due to occupy in interim or if remedial work not planned.

[nunnyrose]

Thanks for the responses Steve & Mariner. Fortunately the letting agent has managed to guilt the LL into a 6 month agreement with quick get out clause if T finds an alternative property.

T really have no alternative at this stage so have decided to go ahead.

[Ed999]

My comments only apply if the premises are entirely within England

 

 

The Government Guide to Tenancy Law

 

The guide is titled "Assured and assured shorthold tenancies: a guide for tenants", published by the Department for Communities and Local Government.

 

You can read it at -

 

• http://www.homes4u.co.uk/includes/uploads/file/guides/ASTs.pdf

 

 

Tenancy for LESS than 3 Years

 

3 months deposit + 1 months rent paid 2 weeks ago

 

A verbal tenancy is valid if the term is 3 years or less, if the rent payable is a market rent (i.e. "the best rent reasonably obtainable") [section 54(2), Law of Property Act 1925].

 

Since the law changed in 1989, a verbal tenancy of less than 3 years is ALWAYS valid, if granted at a market rent, even if the tenant does not take up occupation.

 

In the present posting, as the tenant has paid the first month's rent, a tenancy exists, by virtue of that payment, and the landlord can be sued by the tenant for breach of contract if he now refuses to let the tenant into the property let.