Latest in LettingsIssue 10
Letting Agents Commissions And The Office Of Fair Trading
You may have seen the BBC Watchdog programme or seen news items in the Daily Telegraph page 15 ( www.telegraph.co.uk) and The Times, page 49 ( timesonline.co.uk) both of Wednesday 27th February 2008.
Briefly, the Office of Fair Trading (OFT) has asked the High Court to decide whether the way Foxtons charge commissions to landlords after a tenancy agreement has come to an end is in breach of the Unfair Terms and Consumer Contract Regualtions 1999.
You should not be too concerned
- The Consumer legislation will not apply to buy-to-let landlords or other investment landlords who are ‘letting in the course of business’
- It will not apply when charges are made for continuing services such as rent collection and property management to any landlord.
Attempts to collect repeat fees when tenants introduced to “let only landlords” stay on after the end of the original tenancy may be at risk.
Secure your long term cash flow by selling full management or rent collection services and nurture every landlord especially those who invest in Homes to Let.
Reminder
Housing Benefit Payments – The Local Housing Allowance
This new benefit regime comes into force on 6th April 2008.
LHA will then be paid direct to tenants in the case of
- New claimants
- Amended claims
- Change of address
- Periodic reviews
- After a break of one week or more in the payment of benefit
Look back at Issue 7 of Latest in Lettings dated 16th November 2007
EMail us at enquiries@lettingbureau.co.uk if you need a further copy.