The warning comes as it publishes an evaluation of its consumer enforcement case against Foxtons for breaching the Unfair Terms in Consumer Contracts Regulations 1999 (UTCCRs).
In February 2010, the OFT secured an enforcement order from the High Court when it ruled that Foxtons’ renewal commission terms were not transparent, which led to Foxtons amending some of their letting agreement terms.
The evaluation shows that OFT intervention has resulted in positive benefits for consumer landlords that use Foxtons with an estimated annual benefit of at least £4.4m.
However the OFT is embarking on further engagement and awareness-raising as the evaluation report found that some consumer landlords and letting agents remain unaware of the High Court ruling and its implications for the sector.
The OFT has written to some letting agents and their industry associations pointing this out and has invited a number of agents to an event this autumn, focusing on the need for transparency of terms in contracts.
Amelia Fletcher, OFT chief economist, said that the research demonstrated the financial benefit for consumers from the OFT’s intervention.
“However, there is evidence of continuing poor practice by some letting agents, which need to go further to make their contracts transparent and fair.
“We will be engaging with business over the coming months to raise awareness and compliance with the law.”
