Yes your reply I has confirmed what I had thought. I am just waiting for my husband to get home from a meeting to see if we have any other questions. I hope you don't mind or can I rate and get back to you under this umbrella. I did write to the agent and this is his explanation bearing in mind we pay 8% letting fee:
The money that a client puts down to secure the property is a cost to cover the administration i.e. the referencing, the contracts, the credit check and our time etc. Remember we get charged by the company that conducts all the referencing checks.
Before the move in the tenant would pay the remainder of the funds i.e. the first months rent and the main delapidations deposit.
As such there will be no money paid to the owner because we have not received any rent."