Letting agent Foxtons - ruling imminent

Landlords who use a letting agent will be interested in the outcome of the so called 'Foxtons case'. Foxtons, a London based estate agency are best known for their reputation for aggressive sales tactics and the use by their staff of distinctively branded Minis.

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This case is a complicated legal case revolving around the practice of some letting agents requiring their landlords to sign agreements binding a landlord to paying expensive renewal fees for subsequent lettings even if the letting agents have no direct involvement.

David Lawrenson recently looked at the issue of tenancy renewal fees.


OFT successfully challenge ruling
The Office of Fair Trading (OFT) last week won an important initial argument against Foxtons. This is because they successfully appealed an earlier judgment that the outcome of the full case to be heard in the High Court later this month would only relate to new letting agreements signed after the judgement. This means that the outcome of the High Court case taking place in the week beginning April 27 will also apply to existing tenancies.


Precedent to be set
If Foxtons lose the case, last weeks ruling will impact financially on not just Foxtons but other agents who charge renewals. The High Court case will set the precedent as to the legality of renewal fees.

There is a huge question that hangs over any decision in respect of how any precedent applies to historically charged renewal fees.

Many landlords have reluctantly paid very large renewal fees in the past. Will these be able to be claimed back? In many ways the outcome of the case could result in more questions than answers. But at least landlords are moving in the right direction in the respect that with the backing of the OFT then hopefully this ridiculous practice of charging renewal feels will be banished to the annals of history.


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