Draft OFT Guidance for Letting Professionals

The Office of Fair Trading is consulting on draft guidance aimed at letting agents and residential landlords. It focuses on potentially unfair contract terms and various consumer protection regulations with a view to get letting professionals complying with the law.

The Office of OFT previously published a report (February 2013) identifying a number of concerns about the private rented sector. Cavendish Elithorn, Executive Director at the OFT said, upon issuing the consultation earlier this month:-

‘The private rented sector is vitally important to millions of people, whether they are students, young professionals or families. Rental contracts can be the largest financial commitment some people have and letting agent fees can be hundreds of pounds.

Our earlier report into the lettings market found that both tenants and landlords were concerned about the clarity of communication from agents including about fees and charges and poor service.

Traders should always provide full disclosure of relevant information upfront, including a clear statement of the costs that will be incurred over the course of the rental. This guidance should ensure that businesses enable people to make decisions based on full information about the property and the agreement they are entering into, when they are looking to rent.’

The draft guidance provides an overview of the legislation relevant to lettings professionals that the OFT enforces and sets out some examples of the kinds of unfair trading practices or conduct specific to property lettings that may breach them.  It also provides some steps which letting professionals may wish to take in order to comply with the laws and offers guidance in relation to a number of areas from advertising a property, managing and terminating the tenancy.

The consultation is open until the 10^th December 2013 and a copy of the draft guidance can be found here