Letting agents to publicise fees charged to landlords and tenants

As from today (27th May 2015), it is a statutory duty for letting agents to fully publicise the fees they charge to both landlords and tenants. Under the Consumer Rights Act 2015, letting agents must visibly display a list of their fees at each of their offices, including their website.


These new requirements have been issued by the Department for Communities and Local Government with some input from the Advertising Standards Authority. The new guidelines state that, "all fees, charges or penalties (however expressed) which are payable to the agent by a landlord or tenant in respect of letting agency work and property management work carried out by the agent in connection with an assured tenancy. This includes fees, charges or penalties in connection with an assured tenancy of a property or a property that is, has been or is proposed to be let under an assured tenancy.”


All fees must also be inclusive of VAT. Letting agents however, do not need to publicise the rent which is payable to a landlord or the tenancy deposit which is taken as security against any damage or violation of the tenancy agreement.



These guidelines are enforced by Trading Standards. Non-compliance will result in a fine of up to £5,000. Lower fines will only be applicable to those in extenuating circumstances. Common excuses including, ‘I did not know about the law’ or ‘I did not know what to do,’ are no longer acceptable.


This change now means that a breakdown in costs are required. All fees should be clear without surcharges or hidden costs. Fees for things like 'administration fees' will no longer be acceptable, with all charges being displayed inclusive of tax.


In addition to these changes, letting agents must also display which redress scheme they have joined. There are three redress schemes and they include:


- The Property Ombudsman


- The Property Redress Scheme or Ombudsman Services


- Client Money Protection (CMP)



But what do you think? Start your own discussion in the LawStore Social Landlord and Tenant forum.

Consumer Law - Know your rights!

The rights of a consumer will depend on the type of business and the agreement or terms and conditions of the trader. Consumer rights can be divided into 3 main categories:

The Sale of Goods Acts

Under this Act, goods sold to a consumer must be of a reasonable quality, fit for their intended purpose and must match any descriptions which have been given on the product. It is common thought that there is a fixed time limit for rejecting goods which are not of reasonable quality for instance. However it is important to be aware that there is no such time limit and the only obligation required is to notify and claim against the seller within a reasonable time.

The Sales of Goods Act also covers services, which requires that the service is provided with reasonable skill and care within a reasonable time. The right to return  goods based on the consumer not being happy with the product is also a myth. Although the vast majority of retailers will accept returns even when the goods are not faulty or as described, they are not any under obligation to do so. This type of returns policy is more of a goodwill gesture.

With this in mind, traders should be aware that if they do not offer a returns policy for non-faulty items, then that time limit will not apply if a consumer wishes to return goods which are faulty and the consumer has notified the trader within a reasonable time.


Distance Selling/Consumer Regulations

The supply of goods and services 'at a distance' which include products bought over the internet or phone for example are now covered by the Consumer Contracts Regulations (Consumer Regulations). It is important to be aware that Consumer Regulations can be rather complex and traders should be aware that:

• there is an obligation as a business supplying goods or services at a distance to give consumers a no questions asked 14-day right to cancel their order.
• an easy way to cancel their order needs to be provided
• a specific form for cancelling must be given to consumers
• traders must make consumers aware about a consumers right to cancel

However there are some products and services such as personalised items or perishable goods which are exempt from this right to cancel.

If a trader fails to inform consumers of their right to cancel, the consumer will be entitled to up to a year to cancel the contract and receive a full refund.  It is a criminal offence if they fail to tell consumers about their cancellation rights.

Delivery costs can also be confusing. The consumer is required to pay for the return shipping but must be refunded for any delivery costs paid.

If a consumer asks for services to commence during the 14 day cancellation period, whilst they still have a right to cancel, the consumer will lose their right to a refund  for the services which were provided up to the cancellation. However it is important that the consumer agrees to this.

The regulations also prohibit pre-ticking boxes for additional charges and there are separate regulations which prevent charging an exaggerated mark up for credit card payments.


Unfair Contract Terms

The Unfair Contract Terms Act and the Unfair terms in Consumer Contract Regulations help to protect consumers against unfair contract terms. Unfair terms cannot be enforced against a consumer.

Unfair terms can include:

• unreasonably excluding liability
• unreasonable timescales given to consumers for complaints and disputes
• biased cancellation policies
• supplier changing the price of goods without consumers knowledge

 As a result, traders should ensure that their terms and conditions meet the requirements of fair.