The Office of Fair Trading has warned that some landlords and letting agents remain unaware of the implications for the sector of a High Court ruling against Foxtons.
Last February, the OFT secured an enforcement order from the High Court ruling that Foxtons’ renewal commission terms were not transparent, which led the firm to amend some letting agreement terms with landlords.
The OFT said today that letting agents needed to check that their terms are fair and transparent as it publishes an evaluation of its consumer enforcement case, which found that its intervention benefited Foxtons’ consumer landlords to the estimated tune of £4.4 million.
Amelia Fletcher, OFT chief economist, said: “This research clearly demonstrates that there has been an immediate financial benefit for consumers from our intervention, and also evidence of knock-on benefits from making this market more competitive.
“However, there is evidence of continuing poor practice by some letting agents, which need to go further to make their contracts transparent and fair. We will be engaging with businesses over the coming months to raise awareness and compliance with the law.”
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