Renewal fees 'unfair' to landlords

24 February 2010

Written by Gavin Elley

Buy to let landlords are being unfairly charged renewal fees by letting agents.

Chairman of the National Landlords Association (NLA) David Salusbury made the claim after the Office of Fair Trading (OFT) secured a court order on the issue.

The OFT has been trying to protect landlords after the High Court ruled last year that an estate agent's commission charges could prove to be a trap.

Mr Salusbury said: "The message to all letting agents is now clear - do not try and mislead your clients."

While the latest pledge of support is good news for NLA members, there is no reason why letting agents should be able to charge landlords when a tenant renews their contract, he added.

The organisation has noted that letting agents can benefit some landlords but their use depends on the individual circumstances.

Previous research by the NLA found that almost 60 per cent of members employ such services.

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