What Does 'Let Agreed' Mean? When an Offer has been Accepted

by Robert Jones, Founder of Property Investments UK
With nearly two decades in UK property, Rob has been investing in buy-to-let since 2005, and uses property data to develop tools for property market analysis.

"Let Agreed" typically refers to a property that has been rented out. The landlord and tenant have agreed on the terms of the tenancy and signed a lease or rental agreement. It means that the landlord and tenant have agreed to the terms of the tenancy agreement. At this point, the tenant is very close to moving in.

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The Meaning of 'Let Agreed'
- A More Succinct Definition
What is the Difference Between 'Let' and 'Let Agreed'?
Is There a Difference Between 'Letting' and 'Renting'?
- What Does it Mean to Lease?
Why Do People Advertise 'Let Agreed' Properties When They Aren't Available?
The Tenant's Journey
Deposits
Responsibilities
Summing it all Up

The Meaning of 'Let Agreed'

If you are looking to rent somewhere, you'll often see the term 'let agreed' next to featured listings of rental property. You might have wondered why that property is still featured - why is the agent or landlord still advertising?

You'd be right in thinking that when you see this phrase on Rightmove or Zoopla or featured on a sign in front of a house or flat, it means the property is no longer on the rental market.

And yet it doesn't mean that the house in question has been let - only that it probably will.

A More Succinct Definition

'Let Agreed' means that an offer by a prospective tenant on a rental property has been accepted, in principle, by the landlord or the estate agent. But, before the deal can be completed and the keys are handed over, there will need to be checks done on the tenant, including credit checks, immigration checks (right-to-rent) and contacting references.

So, if you are looking for a place to rent and see 'let agreed' next to the listing or on a signpost in front of the property, the best advice is to move on and look elsewhere.

The chances are that particular ship is going to sail.

But it doesn't mean that the house has been rented out or that a rental agreement has been signed. If you see the perfect home, you can still contact the agent and register your interest. You could end up at the front of the queue should the deal fail, for whatever reason, in the final stages. The agent might give you advice on how to advance your search.

In most cases, however, enquiring about renting a property that's 'Let Agreed' will be a long shot. It will be at the discretion of the letting agent whether or not they allow you to view it.

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What is the Difference Between 'Let' and 'Let Agreed'?

'Let Agreed' is where a tenant and landlord have a written agreement to progress their arrangement. But, at this stage, there is no rental agreement - and there is still a chance that these agreements will fail.

When a property is 'let', there is a rental agreement. If the tenant is not living in the home, there is a good chance they will be doing so soon.

Although there are agreements covering different tenancy types; that might exist between landlord and tenant, the vast majority of tenancy agreements in the UK (for the private rental sector or PRS) are assured shorthold tenancy agreements or ASTs. An AST agreement is a standardised expression of UK housing law that guarantees a tenant's rights to rent and enjoy their home for the term of the contract and a landlord's rights to re-take possession of that home once the contract has expired.

NB The rights of tenants and landlords using an assured shorthold tenancy agreement has changed over time. As political parties and governments adjust their policies to try and address the current housing shortage in the UK through changes in the law, everything is in flux.

For more information, we have an article on AST agreements and one on the Housing Act of 1988 and what it means today.

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Is there a Difference Between 'Letting' and 'Renting'?

There is a difference between the words 'let' and 'rent'. However, in terms of real-world consequences, you can use them interchangeably and still be understood.

In their correct usage, a tenant will 'rent' a property where a landlord 'lets' their property to a tenant. A landlord shouldn't describe what they were doing as renting rather than letting - but such distinctions aren't that important to most people, where what's meant is easily understood.

What does it Mean to Lease?

A further term you will hear regarding a tenancy is the word lease, which typically implies a longer timescale than would be the case for the word rent.

So, a lease is a form of renting. However, renting generally means over the short term, whereas leasing means over a long period.

Therefore, a lease applies more commonly to commercial arrangements. Such arrangements would be covered by a Lease Deed rather than a Rental Agreement, bearing in mind that the distinction is blurry - a lease is a kind of rental agreement.

Please note that none of this is meant as advice on housing law. We suggest you seek the advice of an expert.

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Why Do People Advertise 'Let Agreed' Properties When They Aren't Available?

It's unquestionably frustrating when you are looking for a rental home on a property portal and are presented with options that aren't available to rent. There are, however, good reasons why platforms and agents continue to put such properties forward, even when they are as close as is let already.

As we highlighted above, just because they are technically off the market, that doesn't mean that let agreed properties are a done deal with a rental agreement in place. Though unlikely, the tenancy may fall through. And other interested parties can register their interest in the expectation that this could happen.
With online listings, the user experience of people that have bookmarked and favourited properties has to be considered. Deleting property listings on the website would mean a user's previous engagements with the site may not be respected. They will expect to be able to find the same information that they bookmarked the first time around. The fact that the property is under-offer is only one piece of that information. So, to assist their users, property portals tend to keep properties featured on their sites, even when unavailable.
Showing which properties are agreed upon can help prospective tenants (and others) see how the market is behaving. A prospective tenant that can see featured opportunities turn to 'let agreed' quickly will at least know what they are up against.

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The Tenant's Journey

Once the tenant decides to live in a given property and the landlord is happy to progress, the tenant will pay a deposit.
This deposit means that the property is taken off the market. However, the deal is yet to be completed. At this point, the property becomes 'let-agreed'.
The landlord or the agents now follow up on references and checks. They might require information from an employer and previous landlords. They will carry out a credit check and calculate an earnings-to-rent ratio. And under right-to-rent, they will also check the immigration status of the prospective tenant. The tenant can help speed this process up by supplying written information that is as precise and accurate as possible. The estate agent will, of course, help with this.
Should a guarantor be required, they will have similar background checks to the tenant.
Finally, should the tenant's suitability be confirmed, the deal will be completed, the agreement signed by all parties and the tenant will be free to move in.

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Deposits

Renting a property involves two types of deposit: a holding deposit and a security deposit.

A holding deposit will be required to take the property off-market (let agreed). Should the landlord or the agent decide that the tenant is unsuitable because the checks have not gone well, then the tenancy applicant might be entitled to a refund.

Should the tenant decide to pull out of the agreement after this deposit has been paid, it might not be returned to them. This will depend on the terms and conditions outlined in the initial signed agreement. This is another reason to read any written agreement carefully and seek advice if needed.

A security deposit will be required before the tenant moves into the property to cover any damage or charges.

These two deposits might be merged, meaning a refunded holding deposit can go towards the security deposit.

N.B. With all assured shorthold tenancy agreements, security deposits must be placed in a government-backed tenancy deposit scheme or TDP. Holding deposits do not need to go into a TDP. However, should they be transferred into a security deposit, they do.

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Responsibilities

Once a property is let agreed upon, the responsibilities of the landlord, estate agent and tenant tend to break down as follows (although the relationship between the landlord and agent depends on their written agreement and, of course, a landlord may choose not to use an estate agent).

Estate Agent Responsibilities

The estate agent will take responsibility for the assessment of the tenant. This is done through referencing and checks.
When checks are completed, the agents will communicate with all parties to agree on a date for the tenant to move in and a date for payment of rent.
When all parties agree, the agents will oversee the signing of the tenancy agreement by the landlord and the tenant.
Finally, the estate agent will take the first month's rent and safety deposit. The deposit will be placed in a protection scheme.
If the estate agent holds the keys to the property, then when the tenant moves in, they will hand them over. (This can only happen if authorised by the landlord.)

Landlord Responsibilities

The landlord must ensure that the property conforms to all health and safety regulations. This means the furniture and fittings must comply with fire-safety rules: gas appliances must be serviced by a registered engineer, and the electrics must be confirmed safe by a qualified electrician. All certificates and documents need to be kept.
The landlord must make an inventory. All furniture and fittings in the property should be logged, noting their condition. In some cases, the estate agent will do this on behalf of the landlord. This must be done correctly at the start of any new tenancy. Tenants can dispute any claims of damage that the landlord makes. A copy of the inventory needs to be supplied to the tenant.
The landlord will also want to ensure that the tenant is registered for any utility bills they are supposed to pay.

Tenant Responsibilities

A tenant's only responsibilities are to give correct information on their referencing forms, to pay the deposits and rent on time and to respect the property according to the terms of the AST agreement.

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Summing it all Up

The 'let agreed' period can be stressful for landlords and tenants.

The tenant knows that their circumstances and history are being scrutinised. They know that while the property is no longer on the market, its status as their future home is not assured.
Equally, they are likely to be in a situation where they are accessing more funds than they would usually have to do in a month.
The landlord is in between tenancies. Like the tenant, the landlord is aware that the deal is incomplete; that the details are unfinished.
For landlords, every day where there isn't a deal in place means another day where they are not receiving rent. This means lost earnings and bills to pay on an empty house.

Thankfully, the majority of rental agreements that get to this stage go through. The best estate agents have processes to ensure tenants receive the keys to their new homes as fast as possible.

Hopefully, this will mean the start of a happy and mutually beneficial agreement between all parties involved - the end of a search by someone looking for somewhere to live and the end of a search for a paying tenant by a landlord.

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What Does 'Let Agreed' Mean? When an Offer has been Accepted

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