Letting agents will use the Advertising Standards Authority ruling on fees as a business opportunity.
Peter Grant, managing director of software firm VTUK, also said that “when” Labour gets back into power, the ASA ruling may mean there will be less of a legislative hammer for the industry.
VTUK itself reacted quickly to the ASA ruling that all letting agents must show fees in their adverts as well as rents, by updating its Gemini software, allowing agents to both store and display their costs.
Grant said: “Whether the ruling is fair or not is actually immaterial. Our agents see this as an opportunity to differentiate themselves and once again improve the way in which they are viewed in their own market place.
“Our Scottish agents would have been considerably better placed with the recent Shelter ruling if transparency had been implemented voluntarily five years ago.
“Experience shows that this ASA ruling may well stave off a huge legislative hammer when Labour are re-elected and legislation is once again on the table.
“I have no doubt that the innovative and entrepreneurial skill that the best agents bring to the industry will turn this to an advantage.”
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Comments
Outrageous fees will be spotted by landlords and they will choose their agent and then back to you to strike a sole agency deal.
All other advertisers state T's & C's apply so why can we if we so choose?
@Ray Comer on 2013-03-22 10:13:25
Since when was (say) 'Rent: £500 per month' not ‘legal, decent, honest and truthful’? ' fees apply'- please enquire' or something similar added would suffice.
The practical problem is where do you stop when quoting numbers in adverts. of possiibly incurred fees?
A legal requirement of a written 'list' at the start of a serious enquiry would clearly clarify - most professional agents already do this?
@Terry Lovett
The question I have been posing for weeks is since when can the ASA decree what MUST be included instead of what MUST NOT be included. No answers!
The trouble is that in this country the population meekly obeys anything or anyone who has an official sounding name or a visability jacket - these jobsworths always exceed their legal authority with impunity. Unless it is obvious It is time we queried their legal authority.
@ terry lovett
From NALS
"The ASA administers the Codes of Advertising Practice in the UK. The basic requirement is that all advertisements are ‘legal, decent, honest and truthful’. In theory compliance with the ASA’s rulings is voluntary given that the system is one of self-regulation, but the ASA does have a range of sanctions available where an advertiser does not comply with its Codes, including the possibility of referring the matter to the Office of Fair Trading which may take legal enforcement action."
Can someone please explain to me what legislative power the Advertising Standards Authority has to impose legally binding 'rulings' without an appropriate Act of Law being passed in Parliament? Is a quango 'ruling' now the same as The Law?
'Shelter ruling'!
'ASA ruling'!
How many more 'rulings' is this profession going to be subjected to by every Tom, Dick & Harry (that is what they are)
Can we now assume that all companies advertising any goods or services in future will have to detail in full (as opposed to the general 'fees may apply' disclaimer), exactly what additional fees may be applicable in addition to the price of the goods / services. If not, why not?
In my opinion this is one of the the most ridiculous 'rulings' (if it is indeed legal and within the ASA's remit) I have encountered in over 40 years in the business - whatever VTUK may think. It is agreed that it is good practise to indicate that fees will apply and prospective tenants should be invited to apply for details - but a list of all the specific fees in an initial advert? As long as the specific details are made available in writing from the start at the first point of serious interest in the property that is more than adequate. Is everyone to be treated as children now?
More often than not a cheap service is just that - cheap. This constant race to the bottom with fees will be to the detriment of both landlords and tenants and see quality firms leave the market as they cannot sustain their overheads.
Hi Peter, I hope this may help your understanding, its from the ASA.
"In future we expect all letting agents to make clear what compulsory fees are charged when letting a property, and they should do this from the start. For example a property advertised at £1,500 per-calendar-month (pcm) which requires each tenant to pay a £150 administration fee should be advertised as £1,500 pcm + £150 admin fee per tenant.
Our ruling makes clear that advertisers must include all compulsory fees and charges upfront in the price quoted. If the fee cannot be calculated in advance because of, for example, an individual’s circumstances, then the advertisers must make clear that compulsory fees and charges are excluded and provide adequate information for consumers to establish how additional fees are calculated. This means that potential tenants will have all the information they need in the first instance to help them make an informed choice and to avoid being drawn into contracts they haven’t budgeted for."
Has Mr Grant got clarity on what has to be shown? From what I have read it is still uncertain whether it is a detailed breakdown of fees or simply a "Tenancy Fees apply" notice.
Me thinks Mr Grant has jumped the gun with this no cost advert for his software and his company.
What a load of rubbish, poor agents will use it as a way to quote cheap fees to try and win tenants away from professional agents like ourselves, who have a business to run, staff and office costs to pay for, and that’s why we charge fees!
Contrary to popular belief, we are not a CHARITY!!