Estate agent faces court over £600 bill to change a light fitting

A LEADING estate agent is facing a £2million lawsuit over claims that it hid huge commission rates for work done on properties it rented out for landlords.

Dr Chris Townley consulted lawyers after Foxtons billed him £616 for the installation of a security light at his £500,000 London property, when builders charged the agents only £ 12.50.

The fee came to light when Dr Townley had to get the ‘shoddy’ work redone and was told how much Foxtons had been charged by the original installer.

The law firm Leigh Day has warned it will issue High Court proceedings unless Foxtons agrees to settlement talks.

Dr Townley is seeking £1 ,000 in compensation for ‘inflated costs for work’ during the two-and-ahalf years the agents managed his property.

A further 5 landlords have joined the action, with claims ranging from £ ,000 to £200,000.

‘Landmark case’

Leigh Day says the problem is widespread and has received calls about other estate agents.

Dr Townley claimed that when he confronted Foxtons, he was told the agents had added £137.50 commission alongside an ‘ad hoc management charge’ of 10 per cent. Foxtons had also charged VAT at 20 per cent.

The £203 added was a 9 per cent mark-up on the contractors’ original invoice.

Chris Haan, from Leigh Day, who is leading the case against Foxtons, said that since the claimants came forward in the ‘landmark case’, the agency has changed its website to disclose the fees.

Foxtons said: ‘We believe our fees represent good value and are clearly communicated to landlords and detailed within the terms of each contract.

‘This case reflects a small minority of landlords and we believe is entirely without merit.’