The Property Ombudsman (TPO) has completed Stage One of the OFT’s Consumer Codes Approval Scheme (CCAS) for its Lettings Code.
The Code has been developed to give consumer landlords and their tenants greater protection when dealing with letting agents and better redress if things go wrong.
This means that any holding deposits taken from prospective tenants are kept in a separate designated clients’ account.
Letting agents cannot include sales commissions in their agreements with landlords, or charge renewal commission where the landlord instructs someone else to renew the lease.
Where a let does not go ahead through no fault of the tenant the prospective tenant’s holding deposit will be refunded in full and within ten working days.
TPO will provide a free, independent redress scheme for tenants and landlords who have a complaint against a TPO member.
TPO will now carry out comprehensive monitoring procedures – including mystery shopping exercises and customer satisfaction surveys – to ensure that the Code is working effectively. Only codes that demonstrate this achieve Stage Two and are entitled to display the ‘OFT Approved Code’ logo.
As part of its wider work with letting agents, following a High Court ruling that found Foxtons’ renewal commission terms were not transparent, the OFT is embarking on further awareness-raising amongst letting agents as some remain unaware of the ruling and its implications for the sector. The OFT is hosting an event in the autumn for letting agents and their industry associations. It will focus on the need for transparency of terms in contracts and the proper communication of key points to landlords and tenants, including the need to highlight terms which relate to charges.
Cavendish Elithorn, senior director of the OFT’s Goods and Consumer Group, said: “This code
