High Court ruling "victory" for landlords

A High Court ruling against a letting agency has been hailed as a "victory" for landlords across the country.

The Office of Fair Trading had brought proceedings against Foxtons, claiming that some of the letting agency's charges were unfair.

These included the requirement that landlords must pay commission to Foxtons if a tenant chooses to extend the initial tenancy period, even if the firm played no part in making them stay and no longer managed the property.

John Socha, the vice chairman of the National Landlords Association (NLA), said that the ruling had sent "a direct message to letting agents that this lack of transparency must stop".

He added: "Contracts must be clear with provisions which are upfront and 'plain and intelligible'."

Currently, landlords in London and the south-east who want to renew a tenancy agreement for a year must pay roughly 11 per cent of the rent in commission to the letting agent, according to the NLA.

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