tenant being charged renewal fees

[NicknameTaken]

I moved into a rental property a few months ago and received a letter from the letting agency charging £120 for renewal. I'd happily go on to a rolling tenancy. I've gone back over the lease and the £120 charge isn't mentioned in the lease but it is in a cover letter handed to me the day I collected the keys.

Am I correct in thinking this means it is not part of the terms and conditions of the lease, and I can legally refuse to pay?

They can always issue you with a Section 21, to end the tenancy, rather than allow you to go onto a rolling tenancy. However, if the landlord wants to keep you, s/he would be better off not antagonising you by insisting on a new lease! Can you cut out the letting agent in discussing the next step, and approach the LL directly?

I'm astonished at how many letting agencies get away with this scam. You can refuse to pay as you have a legal right to go onto a statutory periodic tenancy at the end of the initial term. As plutocrap says, they can issue a section 21 and evict you but if you're a good tenant the landlord would be an idiot to do that. It's expensive and they then have the hassle and cost of getting a new tenant, along with the risk of the property being empty for a period.