OFT letting agent ruling 'welcomed'
The Office of Fair Trading (OFT) has announced a new ruling against one Letting Agent which it believed was charging landlords an unfair sum.
Foxtons Estate Agents' renewal commission terms were found to be "not transparent", "represented a trap" and were "therefore unfair", according to the OFT.
As a result, it has secured a final High Court order against the group preventing it from using certain terms concerning sales and commissions in its letting agreements with consumer landlords.
Commenting on the news, Tom Entwistle, director at LandlordZONE.co.uk, said it was a welcome development for UK landlords.
"To charge full commission on renewal or demand a full sales commission if the tenant were to purchase the property would, in my opinion, be unfair," he stated.
The news may also be welcomed by people looking for flats to rent in Blackheath or another part of London.
It could be said, the smaller the amount landlords are charged by Letting Agents, the lower the cost of rent tenants will have to fork out for.
Meanwhile, a recent report from the Communities and Local Government revealed the number of people renting a property has risen while the number of homeowners has dropped.
Written by Chris Price
Published 25th February, 2010
© 2010 Estates IT Limited
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A new ruling on the amount letting agents charge landlords has been welcomed, in what may also be good news for people looking for property to rent in London.