New consumer code to protect buy-to-let landlords

The Office of Fair Trading (OFT)new code will offer landlords more protection against losing money unfairly in agreements with lettings agencies.

In taking effect, with the new code, all tenant deposits held by letting agents must be kept ina separate designated account, it has also been agreed that agents can no longer receive renewal fees from landlords.

Also, any deposits from lets that do not goahead at no fault of the tenant must now be returned within 10 days.

Kevin Cox of Bristol letting agents Igloolets.com said “The introduction of a this code, is good news for both Landlords and reputable agents. Often landlord can be put off by hidden small print and renewal fees, as an agency we have always chosen to embrace and welcome transparency in our dealings with Landlords” He said: "The code reiterates the need for letting agents' terms to be transparent and fair.This specifically includes ensuring private landlords are not locked into long contracts under which they have to keep on paying renewal commissions when they wish to change agent”

TheOFT have committed to random monitoring of letting agents across the UK to ensure that they are following the code correctly.