You’ve seen a property that looks ideal, but it’s marked as let agreed. Or maybe you’re a landlord who’s just accepted an offer and wondering what happens next. So, what exactly does let agreed mean, and how does it fit into the rental process?
This guide explains what the term means, how it differs from a fully let property, and what steps take place before the tenancy begins. Whether you’re renting or letting, this guide helps to understand this part of the journey.
What does ‘let agreed’ mean?
When a property is labelled let agreed, it means the landlord has accepted an offer from a tenant and intends to proceed. The property is typically taken off the market at this point to prevent further viewings or enquiries.
But while there’s a clear intention to move forward, the tenancy hasn’t officially started. Legal and financial checks still need to be completed, and the agreement hasn’t yet been signed. So, while let agreed signals progress, it’s not yet a legally binding stage.
Let agreed vs let: What’s the difference?
Although the terms sound similar, ‘let agreed’ and ‘let’ reflect different stages in the lettings process:
Let agreed means a tenant’s offer has been accepted, and the property is temporarily taken off the market while references, checks, and paperwork are completed.
Let means the tenancy agreement has been signed, and the rental is now legally in place. The property is no longer available to other prospective tenants.
This distinction matters. A property marked let agreed may still return to the market if referencing fails or either party decides not to proceed. A let property is confirmed and off the table.
What happens after an agreement is made?
When a property moves to let agreed status, it signals the start of several important steps for both parties. The property is usually removed from listings, and preparations begin behind the scenes.
The tenant is expected to pay a holding deposit to reserve the property, and the landlord (or letting agent) begins the referencing process. This involves checking financial stability, employment details, and previous rental history.
At the same time, the tenancy agreement is drafted and reviewed, and legal documentation is prepared. The property remains in this transitional stage until both sides are happy to sign the agreement and confirm the tenancy start date. It’s only at that point that the tenancy becomes legally binding.
The holding deposit and tenant fees
At this stage, the tenant is usually asked to pay a holding deposit to secure the property while referencing takes place. This is legally capped at the equivalent of one week’s rent and is subject to clear rules.
- If the tenancy goes ahead, the holding deposit is applied to the first rent payment or the main deposit.
- If the landlord decides not to proceed, the holding deposit must be refunded in full.
- If the tenant withdraws without reason, delays the process unnecessarily, or fails referencing due to inaccurate information, the landlord may keep the deposit.
It’s also worth noting that letting agents and landlords are not allowed to charge additional admin, viewing, or referencing fees under current legislation. Only the rent, tenancy deposit, and holding deposit should apply.
Credit checks and tenant referencing
Referencing is a standard part of the rental process and helps landlords confirm that the tenant is suitable. These checks are often carried out by a letting agent and usually include:
- A credit check to review financial reliability.
- Proof of employment or income.
- References from previous landlords or agents.
- A right to rent check, which confirms the tenant is legally allowed to rent in England.
The process helps ensure that everyone enters the agreement with the right information and expectations. While most checks are straightforward, delays or gaps in documentation can slow the process or, in some cases, result in the application being declined.
Related: What is a rent guarantor?
Signing the tenancy agreement
Once referencing is complete and both parties are satisfied with the terms, the tenancy agreement is signed. This is a legally binding contract that outlines:
- The agreed rent and how often it will be paid.
- The start and end dates of the tenancy.
- Responsibilities for maintenance and repairs.
- Terms for renewing, ending, or breaking the agreement.
Only after this document is signed does the tenancy officially begin. Until then, either the landlord or the tenant can change their mind and withdraw from the process.
Rental deposit and protection
Before the tenancy starts, the tenant pays a security deposit, usually no more than five weeks’ rent for properties with annual rent under £50,000. By law, this deposit must be registered in a government-approved tenancy deposit protection scheme within 30 days.
The scheme protects the deposit during the tenancy and ensures it’s returned fairly at the end. Any deductions must be clearly justified and agreed upon. The landlord must also provide the tenant with details of the scheme and how their deposit is being held.
Related: Rent arears: Help and guidance for tenants
Bringing it all together
Let agreed is a key point in the rental timeline, but it’s not the final step. It means both parties are serious about moving forward, but legal and financial checks still need to be completed.
Understanding this stage can help avoid confusion, reduce the risk of delays, and ensure that everyone is clear on their responsibilities. Whether you’re letting out a property or preparing to move into one, having a clear view of what happens between let agreed and let can make the process far more straightforward.
Need support with your next rental or let? Your Whitegates local branch is here to help tenants and landlords alike, offering expert advice and local insight every step of the way.
Source: Security deposit cap reduced to save renters hundreds of pounds – GOV.UK
