Landlord Dr Chris Townley, who is a client of Foxtons, will likely become the first claimant in the case, which is being taken on behalf of private individual landlords who have engaged Foxtons to let, or both let and manage, their property. They are alleging that Foxtons has charged commissions of up to 33 per cent of a contractor’s fee for work done on their properties without obtaining their fully informed consent. It is also claimed that Foxtons has employed contractors who charge up to three times the market rate, in breach of their duty to try to get a good deal for landlords, and that the estate agency charges tenants various fees that they do not disclose to landlords.

Hidden charges

Dr Townley, previously a lawyer at Clifford Chance, was charged £616 for a light fitting repair at his London property, despite the subcontractor charging £412.50 for the work. The rest of the bill was made up of charges added by Foxtons. Leigh Day said the ‘hidden commission’ was not covered in Dr Townley’s landlord contract with Foxtons and claimed that thousands of other landlords may also be entitled to compensation. They estimate that the final bill for Foxtons could be as high as £42 million. Leigh Day partner Martyn Day is leading the claim against the estate agency with solicitor Chris Haan. Foxtons is yet to instruct external counsel on Townley’s claim, which it received from Leigh Day last week. Sources: The Lawyer; Leigh Day; The Telegraph