Letting agency fined £167k for ‘bait and switch’ advertising

A letting agency has been ordered to pay a £167,000 fine after being prosecuted by the London Borough of Tower Hamlets for a so-called 'bait and switch' renting strategy.

SDV HQ were also ordered to pay compensation of £740 to a renter for misleading room advertising.

A ‘bait and switch’ tactic sees a prospective renter lured to a premises by being shown a room that is in excellent condition at a good price. That room is then not available and the renter is offered a room of a lower standard.

Tower Hamlets Council, whose trading standards service brought the prosecution, said the practice was against the Consumer Protection from Unfair Trading Regulations 2008.

Following a guilty plea, SDV HQ was ordered to pay a £167,000 fine, costs of £8,089.06 and £740 compensation to the complainant. The company has three months to pay.

John Biggs, Mayor of Tower Hamlets said: “This is major victory for residents and for our trading standards team. It sends out a message that we can and will take the strongest action against letting agents who undertake this practice.”

Cllr Sirajul Islam, Deputy Mayor for Housing and Statutory Deputy Mayor of Tower Hamlets, said: “This case shows how seriously we take protecting tenants and the major legal ramifications of misleading potential tenants in this way. Housing is in such short supply that we must enforce against unscrupulous letting agencies.”