Buy-to-Let Landlords can Claim Millions as a Result of Foxtons Ruling

Author: Lynsey Newman

Landlords could be seeking to reclaim millions as a result of the recent ruling in Office of Fair Trading v Foxtons [2009]. Charges which are unfair and that are hidden away in the small print of terms and conditions could leave letting agents open to claims from landlords seeking to recover historic fees.

Foxtons’ standard terms which included charging commission at 11% for tenancy renewals and 2.5% when tenants went on to buy the property even where Foxtons had little or no involvement in the process where held to be unfair by the High Court. The Court ruled that to be fair contracts should be clear and the language used should be plain and intelligible. Important terms should be brought to the attention of the customer, as a typical customer would not expect such important terms to be hidden away in the small print.

This landmark decision serves as a warning to letting agents as to the enforceability of their terms of business and charging structure and the importance of highlighting these to their customers.

Please click here to read an article which explores the ruling in the case and provides practical advice for compliance with the Foxtons decision.