What Does Let Agreed Mean?

“Let Agreed” is a term commonly used in the UK rental market to indicate that a landlord has verbally accepted a tenant’s offer on a property, but the tenancy agreement has not yet been finalized or signed. It signals that the property is likely off the market, but the rental process is still in progress.

Here’s a detailed look at what “Let Agreed” really means and what happens next:

Verbal Agreement: An Informal Understanding

When a property is marked as “Let Agreed,” it means the landlord and tenant have agreed on key rental terms such as the monthly rent, lease length, and move-in date, but this agreement is informal and not yet legally binding. It’s a mutual understanding rather than a contract.

Holding Deposit: Securing the Property

To demonstrate commitment, tenants usually pay a holding deposit (also called a reservation fee). This deposit:

• Shows the tenant’s intention to rent the property.
• Takes the property off the market temporarily.
• Usually equals one week’s rent, though this can vary.

This deposit is crucial but different from the security deposit paid at the start of the tenancy.

Referencing and Checks: Due Diligence

Before the rental is finalized, landlords or letting agents carry out essential checks, including:

• Credit checks to assess financial reliability.
• Right-to-rent checks to verify the tenant’s legal status in the UK.
• Employment and landlord references to ensure tenant credibility.
• Sometimes, background or immigration checks.

These checks protect landlords by reducing the risk of problematic tenancies.

“Let Agreed” Is Not Legally Binding

Despite the status, until the formal tenancy agreement is signed by both landlord and tenant, the “Let Agreed” status does not legally commit either party. This means:

• The tenant can still withdraw, potentially losing their holding deposit.
• The landlord can decide not to proceed if checks reveal issues.

The Property May Still Be Available

Because the agreement is not legally binding yet, properties marked “Let Agreed” may still be shown to other prospective tenants as a backup. This keeps options open in case the initial deal falls through.

Moving to “Let”: Finalizing the Tenancy

The rental becomes official when both parties sign the tenancy agreement and the tenant pays the security deposit and the first month’s rent. After this, the property status changes to “Let”, meaning the property is legally rented out.

What Tenants Should Know About “Let Agreed”

• Holding deposits should be paid via traceable methods (bank transfer, card payments), not cash, to ensure you have proof.
• You should receive a written agreement outlining terms for the holding deposit, including whether it’s refundable and under what circumstances.
• If the tenancy falls through due to landlord fault, your holding deposit should be refunded in full.
• If you pull out, the landlord may keep part or all of the deposit to cover costs.
• Holding deposits are typically transferred into the formal tenancy deposit once contracts are signed, but confirm this with your agent.

What Landlords and Agents Need to Keep in Mind

• Ensure holding deposit agreements are clear and documented to avoid disputes.
• Complete tenant checks promptly to avoid delays.
• Keep communication open with all interested parties, including backup applicants.
• Understand that while “Let Agreed” offers some security, it is not a guarantee until contracts are signed.

FAQs About “Let Agreed”

Q: How long can a property stay in “Let Agreed” status?
A: It varies but typically until referencing and paperwork are completed—usually within 1 to 2 weeks.

Q: Can the landlord refuse to rent after “Let Agreed”?
A: Yes, especially if tenant references or checks raise concerns.

Q: Is “Let Agreed” the same as “Under Offer”?
A: They are similar, but “Let Agreed” is more commonly used in lettings, while “Under Offer” is often used in sales.

Q: What happens if referencing fails?
A: The property will usually go back on the market and may be offered to other applicants.