Changing terms of tenancy after paying deposit.

[QueenOnAPlate]

My son and 3 of his friends have agreed to rent a student house next year which was advertised at £85 per week each including bills. He has paid a deposit and agency fees, but not yet signed the contract.
They are now saying that the ad was wrong, and bills are not included - if they were to include bills it's going to be £100 each. Can they do this? My son and his friends want their deposit and fees back so they canlook for something else, but the agency said they are allowed to change the terms as an agreement hasn't been signed yet, and they said they can't refund the fees as they have done credit checks. However, my son and his friends would not have chosen this property at £100 each a week. Where do they stand? They do have a copy of the listing stating that bills are included ( which has now been changed online).

You might find the Student Union has a solicitor for dealing with these matters.

A letter to the agency threatening legal action and a report to the universities student services.

I agree that a very strongly worded letter should be sent demanding the refund. Their mistake.

It sounds like there is no contract with the landlord but the agency is trying to say there is some kind of contract between the students and the agency for doing credit searches. I don't agree.
They should write a strong letter to the agency saying there is no legal right to change the rent and on what basis is their money being held? and unless it is repaid in 7 days they will report the agency to trading standards for breach of advertising legislation (it is a crime to engage in misleading advertising) and the Consumer Rights Act 2015.

Even if they do get the deposit back write to Trading Standards anyway - its time these shysters were stopped. While you are at it check to see the deposit was placed in the appropriate deposit scheme - if it was complain to them, if it wasn't then on to the County Court.