Advertising Standards Authority rules that fees
must be advertised
The advertising watchdog, the Advertising Standards
Authority, has disappointed many in the lettings industry with a
shock ruling: all letting agents must henceforth clearly advertise
their fees when they advertise a rental property.
The ruling was made after a complaint was made
against Your Move adverts which did not display the agents' admin
charged.
Guy Parker, chief executive of the ASA, justified
the ruling by saying: "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."
Unhappy reaction from industry to Advertising
Standards Authority ruling
However many industry figures have expressed
unhappiness with the new rule. Your Move responded by saying: "Your
Move is committed to regulatory compliance, as demonstrated by
active participation in The Property Ombudsman scheme and the
Association of Residential Letting Agents, and is therefore
disappointed by the ASA Council ruling.
"Your Move follows good
industry practice and is compliant with the ARLA and TPO Codes of
Conduct and the Consumer Protection Regulations."
Caroline Kenny of UKALA and Ian Potter of ARLA have
also expressed discontent. Ms Kelly says that while transparency is
a noble aim, putting admin fees into adverts is simply not
feasible.
It is unclear whether the ASA have a timeline in
mind for the inclusion of admin fees in property adverts. The
initial ruling seemed to imply that it was immediately effective,
meaning that with no warning whatsoever, agents may find themselves
disciplined for following established advertising practice. Further
clarity is being sought by all involved.
The advertising watchdog, the Advertising Standards Authority, has
disappointed many in the lettings industry with a shock ruling: all
letting agents must henceforth clearly advertise their fees when
they advertise
a rental property.
The ruling was made after a complaint was made against Your Move
adverts which did not display the agents' admin charged.
Guy Parker, chief executive of the ASA, justified the ruling by
saying: "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."
Unhappy reaction from industry to Advertising Standards
Authority ruling
However many industry figures have expressed unhappiness with
the new rule. Your Move responded by saying: "Your Move is
committed to regulatory compliance, as demonstrated by active
participation in The Property Ombudsman scheme and the Association of
Residential Letting Agents, and is therefore disappointed by
the ASA Council ruling.
"Your Move follows good industry practice
and is compliant with the ARLA and TPO Codes of Conduct and the
Consumer Protection Regulations."
Caroline Kenny of UKALA and Ian Potter of ARLA have also
expressed discontent. Ms Kelly says that while transparency is a
noble aim, putting admin fees into adverts is simply not
feasible.
It is unclear whether the ASA have a timeline in mind for the
inclusion of admin fees in property adverts. The initial ruling
seemed to imply that it was immediately effective, meaning that
with no warning whatsoever, agents may find themselves disciplined
for following established advertising practice. Further clarity is
being sought by all involved.
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