Buy to let landlords want unfair letting agent renewal fees scrapped (25/02/2010)

The National Landlords Association welcomed a court order secured by the Office of Fair Trading against letting agent Foxtons, saying unfair renewal fees should be scrapped.

Following a landmark judgment from last summer, when the High Court ruled the agent’s commission charges were “severely camouflaged” and represented “a ‘trap’ or ‘time bomb’ for consumers,” the OFT has pursued a court order to protect landlords using the services of an agent.

David Salusbury, Chairman of the NLA, said: “Although this is clearly good news for landlords, the NLA is still calling for these unfair renewal fees to be scrapped. Where the letting agent performs no service to the landlord throughout a tenancy, why should they still be able to charge the landlord of their tenant chooses to renew the tenancy?”

While the OFT has made it clear that landlords “should not be presented with a surprise bill for services they have not consciously agreed to,” the NLA suggests that landlords exercise caution when using an agent.

“The message to all letting agents is now clear: do not try and mislead your clients. Our advice to landlords remains the same. Always check the small print before signing on the dotted line,” said Salusbury.




By Andy Stern

© Property Owners Directory 2010