Lettings agency loses high profile deposit dispute case

An estate agency lost a high profile deposit dispute with tenants after failing to find replacement tenants when agreed.

The Tenancy Deposit Scheme (TDS) ruled that Cedar Estates of North London was wrong to retain nearly £1,655 to cover rent arrears, cleaning and the cost of damages to a flat in Camden.

Charity worker Hadley and her flatmate, who is a teacher, spent months fighting for their deposit back after leaving the two-bed ground floor flat, The Mirror reports.

‘Incredibly stressful’

Hadley said the process was “incredibly stressful”, and “nearly broke her”.

The pair decided to vacate the flat after living there for four years when the rent was put up more than £400 from £1,928 per month to £2,383.

Cedar then asked them to leave 20 days early because another tenant wanted to move in, and they signed a Deed of Surrender.

Problems began

The problems began when the new tenant was unable to take up the tenancy due to visa issues, and Cedar asked Hadley and her friend to stay the full term.

The pair had already lined up somewhere alternative to live, and wanted to leave on the date agreed.

‘Invalid’

Cedar Estates argued that as the new tenants did not sign a tenancy, the deed was invalid.

We did all we could to help the tenants leave their tenancy early.”

A company spokesperson said: “We did all we could to help the tenants leave their tenancy early. But, as explained and made clear in the contract signed, this was only possible if we found another tenant to take over before the end of their contract.

“We did everything possible to find a new tenant, but unfortunately the tenants found did not pass the reference checks.

“We informed the tenants immediately and restarted marketing. We are sorry that, despite every effort, we could not find someone in time to release them early, however the disputed deposit was returned to the tenants by the TDS.”