In a landmark ruling, the advertising watchdog has today ruled that all letting agents must clearly disclose what their fees are when they market rental properties.
The ruling is against Your Move, but also specifically implicates Rightmove, ARLA and the Property Ombudsman.
However, it has far-reaching implications for all advertising media and portals, both sets of ombudsmen, for all the membership bodies, and, most of all, for all letting agents.
The ruling comes as pressure is piled on the whole topic of letting agents’ fees – which were specifically banned in Scotland last year and have become the focus of a Shelter campaign in England.
It also comes on top of yesterday’s Which? report (carried on Letting Agent Today – see link at the end), naming Your Move as one of four agents in possible breach of the law over disclosing fees. The other agents accused were Martin & Co, Foxtons and Barnard Marcus.
This morning, the Advertising Standards Authority’s ruling against Your Move makes it clear that agents will be breaking the rules if they do not spell out exactly what compulsory fees they charge when letting a property.
Your Move found itself in trouble for advertising on Rightmove. The seemingly innocuous advert, for a semi in Surbiton, did not mention a fee.
Guy Parker, chief executive of the ASA, said: “Hidden fees are not only unfair, they hit those who are struggling hardest. Our ruling today makes clear that letting agents need to get their houses in order and treat potential tenants fairly.
“Renting a property is a significant commitment. And for those who are new to the rental market, like students, navigating it can be particularly difficult.
“That’s why the ASA is clamping down on letting agents who hide fees.
“Today’s ruling makes clear that agents must include all compulsory fees and charges in their quoted prices. If the fees cannot be calculated in advance then the agent must make clear that fees have been excluded, and provide enough information for consumers to establish how fees are calculated.
“It’s now our priority to make sure agents across the sector bring their advertising into line.”
In the case, an unnamed complainant challenged whether Your Move adverts on Rightmove were misleading because they did not include the admin charge. Your Move told the advertising body that information about its charge was available on its own website.
The firm, part of LSL, said that no agent listing properties on Rightmove gave admin charges within the listings themselves.
This practice, it argued, was in line with both ARLA and the Property Ombudsman’s codes.
Furthermore, admin charges levied by Your Move varied from region to region, and depended on individual circumstances.
Your Move told the ASA that it acknowledged that fees were material information that would be relevant in the consumer’s decision to rent. However, it did not believe that people arranging viewings because of listings seen on Rightmove were at the stage of deciding to rent. Your Move did not therefore believe that the admin fee was material information that needed to be made known at this point.
For this reason, information on the admin fee was made known to the consumer later on, but before they had decided to rent.
The ASA did not agree with this, saying that the decision to arrange viewings was itself a “transactional decision” and likely to be affected by knowing about the existence and costs of admin fees.
It said that ads should include information about fees, because it was material for consumers when searching Rightmove for a rental property.
The ASA ruled that Your Move’s adverts breached the advertising code on two grounds, concerning prices and misleading advertising. The ads must not appear again without clearly stating the fee information.
See also:
https://www.lettingagenttoday.co.uk/oldeat_news_features/Consumer-watchdog-slams-four-letting-agency-chains-as-illegal-on-fees
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Comments
Also a breach under the Consumer Protection Regs 2008 now being enforced by Trading Standards, so they may get done again yet! Open season on Agents this looks like.
So where are ARLA when you need them?
Hey double your fees great idea, do you work for rightmove?
About time this happened. We tell them on our website and at the bottom of all correspondence when the respond to an ad.
Only the agents that have something to hide will have a problem with this.
And yet express agency is allowed to print any old rubbish to get your business. Go figure
Iam going to double my fees to get rid of breadline tenants. Get a BETTER JOB!!!!
ok this stupid decsion affects us all. Where is our union?? should we start one and strike on stupid decisions..safety in numbers!!
HAHA Poor Your Move, I worked for them and they are the most red taped agent in britain and still get caught..welcome to lettings boys,,its not just about profit.
One iditio ruins it for all, now we have to over charge everyone,,,,who complained about that anyway,,arse hole tenants
Hawkeye - Quite right
Ray Evans - Its the flip side of protectionism under the regulation/consumer protection flag :0)
David - Careful you are beginning to sound like me!!!!
I for one will not change my fees because if I have the right product the tenant will pay. All I have to do is let them know. No big deal.
@SC,Binky and anybody else who is in the slightest bit concerned just go back to bed and it will be OK when you get up.
Another step on the road to FULL (we already have partial) dictatorship in this once free country. More legislation under the guise of consumer/public protection. Our current coalition government agreed to have a 'fixed' five year term - how long before this is extended to say ten years to allow time for even more restrictive legislation?
Our clients can rest assured Eurolink will assist in ensuring our software systems comply with this ruling.
So - what about adverts for properties for sale or to let where the advertised price is "price on application"? If you apply the same logic, then surely the actual figure is "material information" and as such should not be withheld in advertising? This couldn't be "outlawed" by ASA, and therefore, why does this differ from "tenants' fees on application"?
Presumably this will apply to all adverts, not just the internet, therefore shop window displays will have to change as will property lists given out?
I also presume this will apply to all businesses, including but not limited to estate agents solicitors, decorators and others?
Confirmed. We really do have to treat the public as if they are stupid.
shikety bricketty
Cue massive battle to undercut each other on fees. High Street agents are going to struggle to drop theirs.