High Court rules against Foxtons’ letting terms

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by Gill Montia

The Office of Fair Trading (OFT) has won a High Court case against Foxtons, following complaints from landlords.

In February of last year, the OFT began an action against the London-based estate and lettings agency, which had been accused of trapping landlords with small print in its contracts.

The firm was charging landlords for finding tenants and adding a further fee if a tenant remained in a property beyond the initial term of the let.

The charges were levied regardless of whether Foxtons played a part in retaining the tenant and even when the firm was no longer the managing agent.

In addition, should a client sell a property halfway through a contract period, Foxtons expected to receive commission for the full period.

The OFT issued proceedings under the Unfair Terms in Consumer Contract Regulations 1999 and following yesterday’s judgment will ask the High Court to grant injunctions preventing the continued use of the terms by Foxtons.

The outcome means that other letting agents using similar clauses will be making their own amendments.