Trading Standards warns agents about holding deposits during lockdown – but then removes guidance

The National Trading Standards Estate and Letting Agency Team (NTSELAT) yesterday published guidance on the role of agents during the coronavirus emergency measures before mysteriously removing the document.

EYE understands it is being revised and will be put back online shortly.

A spokesman told EYE that it would be updated “in due course.”

The initial guidance, seen by EYE but since removed by NTSELAT,  warned agents must refund holding and security deposits where there is no agreed tenancy or if the tenant is unable to occupy a property due to the coronavirus pandemic.

It warns that a holding deposit should be refunded if no tenancy agreement is in place as it would otherwise be deemed a prohibited payment.

The guidance also states that if a tenancy agreement has been signed but, due to the lockdown, the tenant is unable to occupy the property there is then a strong argument that the contract can be “voided” and any payments made by the tenant should be refunded.

It also states that a security deposit should be refunded “without exception” and any rent paid in advance should be given back if a tenant is unable to move into a property.

Where a tenancy has commenced, NTSELAT said rent should be paid but urges landlords to be sympathetic.

It said: “Where circumstances dictate the property cannot be occupied for part of the tenancy, such as university students who cannot return to the property, the obligation to pay rent still exists.

“However, we would again urge landlords to be sympathetic to the situation and for all parties to utilise government resources to mitigate any losses.”

It adds that landlords and lettings agents are not discharged from duties to undertake emergency repairs.

The guidance backs the Government’s view that estate and lettings agency work is not essential and firms must remain closed for business during the tenure of the lockdown.

NTSELAT repeats the Government advice that buyers and renters should, as far as possible, delay moving until the emergency measures are removed.,

If contracts have exchanged and moving is unavoidable or a delay cannot be agreed, people must follow advice on social distancing to minimise the spread of the virus.

There is no obligation to proceed if contracts haven’t been exchanged, NTSELAT said.

There is no mention of what agents should do regarding physical viewings despite confusion among some who are still allowing them to go ahead.

EYE has sought clarification from NTSELAT on this but it is understood that agents are expected to follow Government guidance.

The Government guidance on viewings states: “There should not be any visitors into your home, and you should therefore not let people visit your property for viewings.

“Your agent may be able to conduct virtual viewings and you could speak to them about this possibility.”

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