Tenants having reserved a property cancel the reservation.
There is a short period of time during which certain tenants and especially students, look for a house with respect to the following academic year, say November to January. The peak month is normally November.
Where a group firmly reserves a house and then cancels the reservation, agents may have little choice but to accept less than suitable substitute tenants to secure a booking.
This can cause considerable losses. By the time of the cancellation there may be a smaller pool of tenants to choose from. This is because most student have now secured accommodation elsewhere leaving potentially unsuitable substitute tenants which letting agents or landlords may be reluctantly obliged to accept in the absence of choice This may prove problematic and costly. This can result in a cancellation fee.