What is the meaning of ‘LET agreed’?
11th February 2025The world of buying and renting properties can be a confusing place, particularly with so many specialist terms that you don’t come across anywhere else. When strolling your local streets or browsing properties online you might come across a sign or listing displaying the term “Let Agreed”, but what does ‘LET Agreed’ mean?
In this blog, we’ll delve into the let agreed meaning and everything it means in relation to renting a property.
If you’re interested in letting a property in Greater Manchester and Lancashire, explore our selection of premium listings at Jon Simon and get your own let agreed on your dream home!
So, what does ‘LET agreed’ mean?
Put simply, when you see a ‘LET agreed’ sign either outside a home or on a popular property portal website such as Zoopla or Rightmove, it means that the landlord has agreed to allow a tenant to rent the property. This agreement is only made in principle, however, and there has been no official signing to remove the property from the market. There are still additional checks needed to check a potential tenant’s eligibility for the property including credit inspections, right to rent checks and referencing.
Usually at this stage, a potential tenant will put down a holding deposit for the property, which is an upfront cost that acts as a way of “reserving” the property and is stored by the landlord or letting agency and will cover the first few weeks of rent if the tenant goes ahead with the LET.
Although this financial transaction may seem like the final step, the deal doesn’t end upon this payment. The property is technically still available to other potential tenants on the market while it remains in a ‘LET agreed’ status and some circumstances can cause an agreement to fall through. Properties with a “LET agreed” don’t tend to remain visible for long however and once the prospective tenant fills out the final paperwork the property becomes officially let and removed.
Is a LET agreement legally binding?
Although both parties will sign an initial tenancy application, this is not a legally binding document and instead only the first process that registers interest and allows your eligibility checks to take place.
When a LET is first agreed you’ll receive a document that has your and the landlord or property shops’ details, the rent amount, the deposit amount and any other key details to reference going forward with the checks. At this stage, both you and your landlord can withdraw from the process for whatever reason.
Only when all parties sign the official tenancy agreement does the process become legally binding and you or the landlord will be held to the terms of the contract should you wish to withdraw.
How to get from ‘LET agreed’ to ‘LET’
Once you’re in the ‘LET agreed’ stage there are only a few more steps left before you can confirm the ‘LET’ of a property. The majority of these steps involve the landlord or letting agent carrying out the necessary checks on each tenant before a tenancy agreement can be signed. Once the following checks are completed, the status of the property will switch from ‘LET agreed’ to ‘LET’:
- Credit checks: Passing a credit check involves a letting agent evaluating your credit history to see whether you’re financially trustworthy.
- Guarantor: A guarantor won’t always be asked for by letting agents, with this essentially being a close contact with the tenant that would cover rent and property damage if the tenant didn’t have the funds.
- Referencing: Including income verification, credit checks and, in some cases, references from previous landlords, this is carried out to further establish your financial stability.
- Right to Rent check: This involves the letting agent making sure that the tenant has the right to live in the UK. This can be proven by the prospective tenant supplying a passport, a valid UK driving licence or multiple other documents.
If you need more information on the checks and terms associated with renting, you can check out our detailed guide on how to rent which explains the whole process.
The importance of deposits
There are two types of deposits associated with renting a property. Some landlords or property managers use both or just one form of deposit when letting.
Holding deposit
Putting down a holding deposit is a statement of intent from the prospective tenant, demonstrating that they are committed to renting a property. This, in turn, gives the landlord a sense of security and allows them the space and time to carry out the eligibility checks outlined above. Crucially, submitting a holding deposit means that a landlord cannot show the property to anyone else while they still have your money and the status of the property becomes “LET agreed”.
The amount of money that is expected of you when setting down a holding deposit depends on the property but under the Tenant Fees Act 2019, a holding deposit fee cannot be more than one week’s rent. Just because the landlord or property manager has accepted the deposit does not mean that the house is yours, however, and if you fail a reference check the deposit must be refunded within seven days. Alternatively, if you’re successful in your application, a holding deposit is often put towards the first month’s rent.
Tenancy deposit
It’s important not to confuse a holding deposit with a tenancy deposit. The latter is held by the landlord or letting agency and is returned at the end of your tenancy if nothing is damaged in the property. Should any damages or charges occur upon inspection of the property after you’ve left, these will be deducted from your deposit amount. In the UK, deposit amounts cannot be more than 6 weeks’ worth of rent (no more than 5 weeks if your rent is under 50K a year).
How can an agreed LET fall through?
For the most part, once a LET is agreed this is usually final but there are some circumstances in which an agreed LET may fall through.
Failed eligibility checks
A tenant might fail to meet the required credit score on their credit checks or they may not have all the boxes ticked when conducting right-to-rent checks. If the tenants have a guarantor, it could be that the guarantor does not meet the checks. If the tenant can’t find a replacement guarantor or rectify any errors in their checks they will not be able to proceed with letting.
Change of mind
Although inconvenient for both parties, a tenant or landlord can decide they no longer want to go forward with the agreement. Whether a tenant has found a property they like better or the landlord has simply decided to take the property off the market, this is an uncommon reason to end an agreed let but does still happen on occasion.
Emergency or unforeseen circumstances
These circumstances arise when for whatever reason a tenant or landlord has to withdraw from an agreement for reasons out of their control. This could be anything from damages or emergency issues with the property that make it unsafe to inhabit to legal issues with documentation or agreements. In extreme cases, the death of a landlord or potential tenant can even end an agreed LET.
Financial issues
Although tenants should always set money aside for a deposit, financial emergencies can arise and the prospective tenants may no longer be able to afford the deposit or even the agreed rent rate. In this case, the LET agreement will also fall through.
At our estate agents in Burnley, if you’re ever worried about an agreed LET falling through you can contact us for advice and we’ll do our best to ensure you can find the perfect rental property.
The benefits of ‘LET agreed’
The ‘Let agreed’ status is ultimately a great position to be in for both renters and landlords alike. Once the holding deposit has been paid and you’re confident that you will pass the referencing process, the property is essentially ‘yours’. This stage of the process has several clear benefits:
- Gives buyers confidence: The rental market is highly volatile, with many needing a renters guide to just get through the process. This stage allows for transparency with tenants and gives them confidence, with the ‘LET agreed’ meaning you are guaranteed that the property is being held for you. This improves trust going forward.
- Minimises vacancy period: By securing an agreed LET, landlords can remove the property from the market, saving money while also ensuring that someone will be filling their vacancy as soon as possible.
- Security for landlords: Once a let has been agreed and this is advertised, it indicates to the landlord that both they and the tenant have reached an agreement and the tenant is serious about renting their property. This means there is less pressure to find a tenant and continue advertising the property.
- Streamlined process: From start to finish, the letting process becomes far simpler, with the final stages of the ‘LET agreed’ status putting off those who aren’t serious about applying.
Find properties for LET in Greater Manchester with Jon Simon
What does ‘LET agreed’ mean? By now you’ll know the answer in detail and if you’re ready to get started with the process then we’re here to help. We know dealing with the property process can be stressful and at Jon Simon our experts are here to help make it easier. With over 15 years of experience buying and selling homes all across Greater Manchester with houses to rent in Radcliffe and other popular areas across the county.
At Jon Simon we are experts in every stage of the process, helping you secure your new favourite property. If you’re looking to buy rather than rent, we’ve got properties in desirable locations like houses for sale in Ramsbottom and houses for sale in Bacup.
Whatever your choice, at Jon Simon we’re available to contact for all your housing needs. Start your journey to finding your dream property by getting in touch today!