‘Money for nothing’ renewal fees should be scrapped

Following a landmark judgment last summer when the High Court ruled that the agent’s commission charges were "severely camouflaged" and represented "a ‘trap’ or ‘timebomb’ for consumers," the OFT has been pursuing a court order to protect landlords using the services of a landlord.

The OFT has made it clear that landlords "should not be presented with a surprise bill for services they have not consciously agreed to."

David Salusbury, Chairman, NLA, said: "Although this is clearly good news for landlords, the NLA is still calling for these unfair renewal fees to be scrapped. Where the letting agent performs no service to the landlord throughout a tenancy, why should they still be able to charge the landlord of their tenant chooses to renew the tenancy?

"The message to all letting agents is now clear: do not try and mislead your clients. Our advice to landlords remains the same. Always check the small print before signing on the dotted line."

Date: 24th, February, 2010

Author: whatmortgage.co.uk