Landlords call for end of 'unfair charges'

News Category: Legal

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The High Court case involving the Office of Fair Trading (OFT) and Foxtons represents an opportunity to make the rental industry fairer, according to a market expert.

Officials from the OFT began action against Foxtons following complaints from landlords about the terms of lettings agreements and the fees charged by the agent.

A particular area of concern is the commission charged by the agent for tenancy renewals in which it is not involved.

Keshav Thukaram, managing director of rental industry website Smart Landlord, said such charges are "completely unjustified" and called for them to be abolished.

He added that letting agents' contracts are often complicated and the level of ongoing commission charged is not always obvious to landlords.

"We hope the ruling goes against Foxtons, so sets a precedent and encourages more transparency … The jargon used in contracts can camouflage how fees are allocated and mask clauses that commit landlords to future commission," concluded Mr Thukaram.

The National Landlords Association has also called on agents to scrap the "totally unwarranted" renewal commission charges.

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