When problems arise, it is important that tenants understand their rights and the remedies they can employ if a letting agency breaches those rights.
‘Dealing with a rogue letting agency can feel like a losing battle against a wall of legal jargon and unfair demands,’ Claire Simon, Partner in the dispute resolution department continues. ‘While many tenants feel forced to accept poor maintenance or withheld deposits as part of the rental experience; you do not have to navigate these frustrations alone. A dispute resolution solicitor can act for you to cut through the red tape and ensure your rights are respected.’
What rights do renters enjoy against letting agents?
Under the Consumer Rights Act 2015, letting agents are legally required to be transparent about their fees and business practices. They must clearly display a list of all fees on their website and in their offices. This is to ensure you are not hit with hidden costs during the application process.
The Tenant Fees Act 2019 meanwhile, limits the types of payments an agent can demand, essentially banning most administrative charges such as credit checks, referencing, and contract renewal fees.
You also have a right to expect a certain level of professional conduct under the requirements for agents to belong to a government-approved redress scheme. This is a mandatory membership that allows you to escalate disputes to an independent body like The Property Ombudsman.
Beyond administrative fairness, you are protected by the Landlord and Tenant Act 1985 and the Homes (Fitness for Human Habitation) Act 2018. While these Acts primarily place obligations on the landlord, the letting agent acting as the property manager is responsible for ensuring the property meets basic safety standards. This includes the right to a home free from serious hazards like damp, mould, or structural instability.
Privacy and quiet enjoyment are also fundamental rights. An agent cannot enter a rented property whenever they please; they must provide at least 24 hours’ written notice and obtain your consent, except in a genuine emergency.
Additionally, agents are legally obliged to protect any tenancy deposit in a government-approved scheme within 30 days of receipt. They must also provide you with prescribed information regarding where the money is held.
What problems might you encounter with a letting agency?
A frequent issue experienced by tenants is the failure of an agency to carry out essential repairs. Often, they claim they are waiting for the landlord’s permission to proceed, leading to weeks or months of inaction. This ‘gatekeeper’ delay can leave tenants in properties without heating, hot water, or functioning sanitation. Such neglect is not just a customer service failure but a potential breach of the implied terms of the tenancy agreement regarding the habitability of the dwelling.
Financial disputes are another common area of friction. Some agencies attempt to bypass the Tenant Fees Act by rebranding prohibited fees as a ‘holding deposit’ that they then refuse to refund without a valid legal reason. At the end of a tenancy, agents may also propose unfair deductions from the security deposit for ‘professional cleaning’ or minor wear and tear that should legally be the landlord's responsibility. These financial pressures can be particularly damaging to tenants who rely on the return of their deposit to secure their next home.
Unprofessional conduct and harassment also remain significant problems. This can range from persistent unannounced visits to aggressive communication regarding rent increases or lease renewals. In some cases, tenants face ‘retaliatory eviction’, where an agent issues a notice to quit simply because the tenant has made a formal complaint about the property's condition.
What are your remedies if a letting agency breaches its duties?
If a letting agency breaches its legal duties, the first step is usually a formal complaint. Every agency is required by law to have a written complaints procedure. If this does not resolve the issue, you can take the matter to a redress scheme which has the power to award financial compensation for distress and inconvenience; these decisions are binding on the agent.
For financial breaches, such as the charging of illegal fees, your best course of action is to engage a specialist dispute resolution solicitor to apply to the First-tier Tribunal. The tribunal has the power to order the agency to repay any prohibited payments. In cases where a deposit was not protected or the prescribed information was not provided, you can claim between one and three times the amount of the deposit as compensation. This is a strict liability penalty intended to ensure agents take their administrative duties seriously. The court has little discretion to waive this penalty if the breach is proven.
When the issue relates to the physical state of the property, the local authority’s environmental health department serves as a powerful ally. They can conduct inspections and issue ‘improvement notices’ or ‘emergency remedial action’ notices. If an agent fails to comply with these, they can be prosecuted or issued with civil penalties.
In cases of breach of contract or negligence that results in physical harm or financial loss, your solicitor can help you sue for damages in the county court.
How will the Renters Rights Act help?
The introduction of the Renters’ Rights Act aims to provide even stronger protections for consumers. One of the most significant changes is the abolition of Section 21 ‘no-fault’ evictions, thus removing the primary tool used for retaliatory evictions. An agent is no longer able to end a tenancy without a valid, evidence-based reason. This allows you to challenge poor agency practices and demand repairs with much greater confidence and security.
The Act also extends the Decent Homes Standard to the private rented sector. Previously, this standard only applied to social housing, but its extension means that letting agents will be held to a much higher benchmark regarding property maintenance. If a property falls below this standard, the agent and landlord will face stricter enforcement measures. Furthermore, the Act introduces a new digital portal and a mandatory Ombudsman for all private landlords, which will work alongside the existing schemes for agents to ensure there are no ‘gaps’ in accountability when a tenant has a grievance.
Another key feature of the new law is the banning of rental bidding wars. Agents will be barred from inviting or accepting offers that are higher than the advertised asking price. This move is designed to make the market more transparent and less exploitative for consumers during the initial stages of a tenancy. By strengthening the powers of local authorities to fine unscrupulous agents and expanding the database of rogue landlords and agents, the Renters’ Rights Act seeks to drive out the ‘bad actors’ who have historically tarnished the industry’s reputation.
How our solicitors can help
While some disputes can be handled through redress schemes, engaging a solicitor can be a decisive factor in most cases. A solicitor can provide a precise legal analysis of whether an agent’s actions constitute a breach of contract or a statutory tort.
We are particularly effective in drafting ‘letters before action’, which signal to an agency that you are serious about litigation. Often, the mere involvement of a legal professional is enough to encourage an agency to settle a dispute or carry out long-delayed repairs to avoid the costs of a court hearing.
Many tenants worry about the cost of hiring a solicitor, fearing it will outweigh the value of the dispute. However, dispute resolution solicitors are often skilled in alternative dispute resolution methods, such as mediation which can be faster and cheaper than going to court.
In situations involving illegal eviction or harassment, our solicitors can act quickly to obtain an injunction to force an agent to allow you back into a property or stop them from entering without notice.
Finally, our solicitors will ensure your evidence is presented in the most effective way possible. Whether it is calculating the amount of compensation owed for an unprotected deposit or coordinating with expert surveyors to document damp and mould, our professional legal guidance maximises the chances of a successful outcome. In an industry in which letting agencies often employ their own legal teams, having an expert advocate in your corner ensures your voice is heard and your rights fully protected under the law.
For further information, please contact Claire Simon or a member of the dispute resolution team on 01905 721600 or via email worcester@parkinsonwright.co.uk
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.