Letting Agent Renewal Fees

The issue of renewal, or repeat fees, charges by letting agents has been a controversial and high profile topic of conversation in the PRS for a number of years.

In 2008 the Office of Fair Trading (OFT) took legal action against a well established chain of agencies deeming its standard terms and conditions in breach of the Unfair Terms in Consumer Contracts Regulations 1999.

The issue of renewal, or repeat fees, charges by letting agents has been a controversial and high profile topic of conversation in the PRS for a number of years.

In 2008 the Office of Fair Trading (OFT) took legal action against a well established chain of agencies deeming its standard terms and conditions in breach of the Unfair Terms in Consumer Contracts Regulations 1999. As a result it was determined that a standard renewal fee, charged irrespective of services rendered which was not made clear as a headline term, or individually negotiated, could be found to be unfair.

However, this does not mean that all renewal fees are unfair by virtue of their inclusion in terms and conditions.

UKALA is strongly committed to the principle that agencies should be free to establish charging tariffs which provide fair recompense for the services provided.

In order for a market to function appropriately and in a sustainable fashion, clients must have the ability to negotiate with service providers in respect of their individual circumstances.

As such, UKALA believes that agencies should ensure that all fees and charges are presented in a transparent, accessible and accountable manner to enable potential consumers to make informed decisions about awarding their business.

All conditions should be clear prior to entering into business, including equitable means for ending the relationship should the need arise in the future.

Such an open approach ensures that consumers only accept charges they find appropriate to the service received, and potential future disputes are eliminated without the need for intervention.