No refund on £4,500 holiday rental

[littlelightshining]

Hi, had posted this in coronavirus but was advised to post here as it's essentially a legal rights issue. Appreciate any advice!

Every year my whole extended family rent a big house for the October half term (one week). We save a certain amount each month into one account and that covers the cost of the house rental and usually a big sainsbury's shop. It's literally the highlight of everyone's year (yes, we're a family that actualy quite like each other!) and many years it's the only holiday we have. We had booked for this October and received a message from the house rental people saying only 6 people can go, but because the house rental is still legal we are not entitled to a refund. They will not move the booking to another week next year. The house is obviously ridiculously big for 6 people, and that would also make a very expensive week for 6 people to pay!! Does anyone know if we have a leg to stand on? We've tried appealing for flex or compromise but received a reply telling us that they are close to liquidating the company and we have no other options. Anyone have any helpful insight here? Realise that losing money isn't as bad as many situations others are facing right now, but have to admit I'm feeling a bit down about it right now.

One of the paragraphs from the letter:

The contract you entered into was for the hire of the property as a whole. Indications are given in our information as to the maximum number of people that can be
accommodated but the actual number is determined by choice or, in this case, regulatory restriction. The latest ‘6 person’ restrictions do not prohibit us from renting the house to you, and, as your contract is for the house, we can and should provide it to you. There is therefore no ‘frustration’. The case law suggests that whilst one party might find the position highly ‘inconvenient’, it does not mean a contract is frustrated. The basic test for frustration is an ‘impossibility’ to perform the contract. The fact that governmental restrictions introduce a ‘six-person restriction’ on your enjoyment of the property is highly inconvenient (to use the case law terminology) but does not frustrate the contract.

Whilst they can still offer you the property, your argument is that performance is now radically different from what was agreed - you rented a property that was advertised as capable of accommodating X people but it can now only accommodate 6 people. The contract is therefore frustrated. The bigger the difference between X and 6 the stronger your case. Guidance from the Competition and Markets Authority suggests you should receive a full refund but ultimately it is up to the courts. If it goes that far I think you have a good chance of success. You might want to point them at the CMA guidance which can be found at www.gov.uk/government/publications/cma-to-investigate-concerns-about-cancellation-policies-during-the-coronavirus-covid-19-pandemic/the-coronavirus-covid-19-pandemic-consumer-contracts-cancellation-and-refunds.

My friend us in the exact same position, so I'll send her your link thanks prh47

Good luck OP, that's a lot of money for nothing! I hope you get the refund

If they go bust then you'll be low down on the list of creditors. Would 6 of you want to go?

Best to always pay for items or services over £100 on a credit card. You then obtain the s75 CCA protection which means if the contract is not performed or the company become bankrupt you can make a claim against the credit provider or the shop/service provider.

Just came across this on MSE (while looking for something else) and thought of your thread @littlelightshining

You should be entitled to a refund, but it's a grey area it seems.

www.moneysavingexpert.com/news/2020/09/social-gatherings-of-more-than-six-banned-in-england-from-next-w/

"If your holiday provider refuses to offer a refund, whether you're legally entitled to one isn't entirely clear-cut.
When we asked the Department for Business, Energy and Industrial Strategy about consumers' refund rights in this situation, it pointed us to guidance from the Competition and Markets Authority (CMA), which says that consumers should get a refund if they cancel or can't use a service because of Government health measures.

As the new six-person rule is a legal restriction (unlike the previous rules on households staying together, which are guidelines) and consumers could face a fine if they break the law in order to use their holiday booking, the CMA guidance suggests they'd be owed a refund.

But it's important to note CMA guidance isn't a definitive interpretation of the law, and this is a new scenario which hasn't been tested – so while you can point your holiday accommodation provider to the guidance, complain to the CMA or even pursue legal action, there are no guarantees you'll get a refund.

Another option would be to try your travel insurer if you can't get a refund directly from your accommodation provider, but this will likely depend on your policy."

Taken from the link. But have a read through yourself and look at the CMA guidance mentioned.

Good luck.

Prh is a lawyer. You can rely on their post.

Thank you, this is great information. It does seem like a grey area but helpful to at least have something to go back with! I don't fancy our chances much but worth a shot, such a lot of our hard earned money