OFT versus Foxtons case should encourage greater transparency

Keshav Thukaram, managing director of smartlandlord.co.uk, hopes the OFT case against Foxtons will encourage greater transparency across the industry: ‘Landlords, particularly new landlords, often find the wording of lettings agents' contracts confusing. We hope the ruling goes against Foxtons, so sets a precedent and encourages more transparency across the industry. Whether intentionally or not, the jargon used in contracts can camouflage how fees are allocated and mask clauses that commit landlords to future commission.

The practice of charging commission for renewal of tenancies that have not been managed by the letting agent is completely unjustified and must be scrapped. But with such a widespread practice, it will take time for all lettings agents to comply and many may dig their heels in at a time when they rely on lettings commissions for a large proportion of their income. Landlords using agents need to ensure they read contracts thoroughly and question anything they don't understand or don't agree with. Otherwise they risk being stung later by hefty charges they don't expect.

Above all, it is important that landlords are aware that there are now transparent, cost-effective alternatives available through online services such as Smartlandlord.co.uk, where you only pay for what you really need and which will find a tenant for a low one-off fee without hidden extras.'