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skinny
No idea whether or not this still applies. But I successfully challenged a LL with the deposit scheme by saying this was withholding my deposit illegally, when I refused and they tried to take it out of the deposit.
As you say, I think agent fees for checking references are illegal under 2019 tenant protection act (or whatever it’s really called). If I saw that on an ad, I’d be steering clear. They’re either trying it on or they haven’t been bothered to update their ad wording since before the legislation. Either way, it’s a pretty shoddy look.