Court battle over letting agents fees
A decision is expected today in a High Court case to settle fees charged landlords by letting agents.
The Office for Fair Trading (OFT) is pushing the High Court to rule that the term and conditions used by Foxtons are unfair.
The renewal fees see landlords charged when the letting agent is not managing the property but just organised the original letting. Fees could also be charged after the landlord has sold the property.
The issue of letting agent fees has been in and out of the courts for over a year and it is hoped a final decision will be made today.
During the case that has been running this week, Nicholas Green, QC, who is representing the OFT said the conditions were "plainly unfair" and not written in plain English leaving customers confused.
While the case involves London-based Foxtons, the fees are thought to be widespread in the industry and in particular in the south-east.
The National Landlords Association (NLA) warns a landlord facing the fees could have to pay around 11 per cent of their annual rent as renewal commission.
John Socha, NLA vice chairman, said: "This is a landmark hearing where, we hope, consumers will get some much needed protection from these unacceptable charges.
"All landlords expect to pay a commission at the beginning of a tenancy, but with rents in London and the South East still topping the tables, another fee of this size is simply unfair."
He added: "There is absolutely no reason for a significant renewal fee that doesn't reflect the work undertaken. These charges really are 'money for nothing'."
He advised landlords to check the small print of contracts before signing and negotiate all clauses that are a cause for concern.
"If this isn't possible, then landlords should vote with their feet and try a different agent," Mr Socha concluded.
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