Some landlords could be able to reclaim renewal fees on tenancy agreements following action brought by the Office of Fair Trading (OFT) against lettings agent Foxtons, it has emerged.
The National Landlords Association (NLA) has published a breakdown of the High Court decision on the case, in which the OFT sought to determine whether lettings agents can charge renewal fees on tenancy agreements when they do not provide any ongoing service to the landlord or tenants.
According to the NLA, it is difficult to be certain as yet what the implications of the verdict are; however, as the case was considered under the Unfair Terms in Consumer Contracts Regulations 1999, professional landlords might not be able to claim.
Instead, non-business landlords - consumers who rent out a property as a secondary, rather than primary, source of income - could be able to make a claim.
Among the other fees determined to be unfair - in part due to their being included only in the small print of the contract - was the attempt by Foxtons to claim commission if a landlord sold a rental property to the tenant.
Written by Mark Garner
