Foxtons has withdrawn its appeal against part of a High Court ruling that so-called “money-for-nothing fees” that it charged under letting contracts were unfair.
In December 2009, Mann J granted Foxtons permission to appeal part of his decision in July that backed the Office of Fair Trading’s (OFT) view that the fees, included in the small print of Foxtons’ leasing agreements, broke consumer regulations.
The July ruling was made in respect of clauses concerning renewals, third-party renewals and sales that Foxtons no longer uses in its letting contracts and a new version of the renewal fee clause that it formulated in response to the OFT’s concerns.
Legal commentators had questioned whether that ruling could stand in view of the Supreme Court decision last November on the OFT’s separate investigation of bank charges.
However, Foxtons has now decided not to pursue the appeal.
A spokesperson for Foxtons said: “During the final stages of the renewals legal case last year, Foxtons amended its renewal terms and conditions so that they were acceptable to the OFT and the High Court judge.
“These new terms have now been formalised in a High Court order and we therefore no longer feel it necessary to appeal the High Court decision.
“The new terms are more user-friendly and provide for renewal commission to be charged at a reduced level and for a maximum of two years, making them very attractive to landlords,” she said.
