NLA Welcomes High Court’s Ruling

Lately, the National Landlords Association (NLA), has become one of a large number of other organizations, which have warmly welcomed the latest High Court’s ruling that is expected to bring an end to illegal renewal fees, which are being imposed by letting agents on landlords and tenants.
As for now, London and South Eastern landlords, who have been managing a property and willing to renew their tenancy agreement, will have to pay as much as 11% of their annual rent income in renewal commission to the letting agency. The National Landlords Association representative claimed that for many landlords this commission amounts to thousands of pounds and it is still 100% unwarranted.
In the course of the Court hearing of the Foxtons case, Mr. Justice Mann claimed that he finds all the provisions to be unfair and that he is determined that the renewal commission is camouflaged.
It should be noted that the Office of Fair Trading (OFT) stated it wants the letting industry to comply with the Court’s ruling and said it will ensure it where possible as the organization is determined that repetitive charging of the renewal commission is very embarrassing for consumers.
Vice Chairman of the National Landlords Association, Mr. John Socha, claimed that the organization has been campaigning for this change for more than 2 years. He added that the Court’s ruling should make all letting agencies stop their practices that lack transparency and replace them with clear and upfront contracts. He claimed that despite the fact that Mr. Justice Mann has not ruled against renewal commissions as such, he clearly indicated that they cannot be hidden (currently letting agencies hide various commissions by putting them in the small print).
Mr. Socha is determined that the Court’s ruling represents a victory of the National Landlords Association in particular and British landlords in general.