Following the decision in the Office of Fair Trading (OFT) vs. Foxtons court case on Friday 10th July, Hamptons International states the following:
“The case was only ever a matter between the OFT and Foxtons and has no bearing on any other agent. The OFT has more work to do before the same terms can be applied to any other company. As a result Hamptons’ current Terms stand and there is no change to existing landlords.
The ruling also makes clear that the charging of renewal commission, even where the agent has not been directly involved in the negotiation of the renewal, is acceptable provided that the terms of the agreement are presented in plain and intelligible language.
Hamptons International’s Terms and Conditions of Business have been written clearly and intelligibly. The company supports the need for greater transparency and is committed to best practice and high standards of compliance, ensuring all fees and charges are made clear.
Hamptons International is a member of all the key UK property bodies including The Ombudsman for Estate Agents (OEA), Financial Services Authority (FSA), ARLA and The OFT.”
Formal response from ARLA on the OFT Vs Foxtons case
In response to the High Court judgement on the case of the OFT vs. Foxtons, Ian Potter, Operations Manager, of the Association of Residential Letting Agents (ARLA) states as follows:
“We welcome Mr. Justice Mann’s clarification on the issue of contract transparency in relation to letting agent fees. Contrary to misleading information that has already appeared in the press, the ruling has not stated that renewal fees are unfair but that these fees must be explicitly laid out. ARLA strongly supports the need for transparency and our members adhere to this premise though a strict code of practice, which binds them to ensuring all fees and charges are made clear.
“The lettings market has changed irrevocably in recent times. ARLA’s members have recognised this change by launching the licensing campaign for lettings agents which is founded on the need for improved standards, best practice and redress for consumers. Today’s ruling will serve, therefore, as another building block in our aim to create strong foundations for the lettings market as we re-assess the provision of our services and how we communicate them.
“To quote the clause E.III of the Code of Practice: “The Terms of Business used by a Member Firm must be clearly presented and written in plain and intelligible language and endeavour, where appropriate, to take account of the Unfair Terms in Consumer Contract Regulations.”
“In effect ARLA members have always been encouraged to follow industry best practice and to provide information on fees and charges in clear and transparent manner.
“The letting of a residential property is, by its nature, a complex transaction centred on the emotive subject of people’s homes. A key element of ARLA’s licensing campaign to professionalise the sector is to increase consumer understanding of this complex process. We once again encourage landlords and tenants to only choose ARLA members. This is because they are advised to make all fees and charges clear and reasonable and are subject to a consumer complaint scheme if they are not.”
For more and to discuss your own property needs please contact your local Hamptons branch.
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For press enquiries please contact:
Jane Jorgensen, Associate Director, - Hamptons International
020 7589 9775, jorgensenj@hamptons-int.com