Letting Agents Legal Obligation To Disclose Fees Upfront!

Consumer Rights Act 2015: Duty of letting agents to publicise fees

Under Chapter 3 of the Consumer Rights Act 2015, it states that letting agents (in England & Wales) must publicise fees that relate to their letting agency or property management work.

Here are the key clauses:

(1) A letting agent must, in accordance with this section, publicise details of the agent’s relevant fees.

(2) The agent must display a list of the fees –
– (a) at each of the agent’s premises at which the agent deals face-to-face with persons using or proposing to use services to which the fees relate, and
– (b) at a place in each of those premises at which the list is likely to be seen by such persons.

(3) The agent must publish a list of the fees on the agent’s website (if it has a website).

(4) A list of fees displayed or published in accordance with subsection (2) or (3) must include –
– (a) a description of each fee that is sufficient to enable a person who is liable to pay it to understand the service or cost that is covered by the fee or the purpose for which it is imposed (as the case may be),
– (b) in the case of a fee which tenants are liable to pay, an indication of whether the fee relates to each dwelling-house or each tenant under a tenancy of the dwelling-house, and
– (c) the amount of each fee inclusive of any applicable tax or, where the amount of a fee cannot reasonably be determined in advance, a description of how that fee is calculated.

Key clauses summarised

Hopefully all pretty straightforward, but to summarise the key points (in plain English):

• Letting agents must display their fees in their place of business (i.e. local branch) and their website (if it has a website). Basically, they must make the fees accessible.
• Each fee must have a description, making it clear what service the fee covers.
• If fees cannot be “reasonably be determined” in advance, then a description of how the fee is calculated must be provided. An example of this can be the cost to evict tenants.
• in the case of a fee that a tenant is liable to pay, it should be made clear whether the fee relates to each property or to each tenant under a tenancy within a property.

What if my letting agent did NOT disclose their fees?

Penalty for breach of duty

If your letting agent is attempting to charge fees that were either not clearly explained or available at the time of using their service, then they are likely breaching their duty, and as per section 87(7), they could face a financial penalty of up to £5,000 if found guilty.

My only initial concern is that unless you have a copy of the fees (from the commencement of service), it might be difficult to prove your case. That’s precisely why it’s always sensible to get a copy of them before using the services of any letting agent so you can rely on it if needed. Of course, worthwhile and reputable letting agents will provide you with a full breakdown of their fees and be completely transparent from the offset.

Who can you complain to?

It’s always best to raise any concerns with the branch manager (or authorised personnel) first, to see if they can be resolved amicably. If necessary, gently flag their legal obligations to comply with the Consumer Rights Act 2015.

Failing that, you can lodge a complaint with the redress scheme your letting agent is a member of (e.g. The Property Ombudsman, Property Redress Scheme). In 2014, it became a legal obligation for lettings agents in England to become member of a redress scheme for dealing with complaints.

Right, and I’m done.

I hope you never have to rely on this information (alas, the likelihood is that if you’re reading this you are!).

Landlord out xo