Propertymark has warned of the potential financial impact on letting agents and landlords as Northern Ireland considers new legislation to curb unfair letting fees.
A proposed Private Member’s Bill, led by Foyle MLA Ciara Fergurson, aims to eliminate unjust costs faced by tenants, making private rental housing more accessible and affordable.
The legislation follows a consultation that ran from March to May, seeking input on what fees tenants typically encounter and which are considered fair by both renters and agents.
Propertymark, alongside local letting professionals, engaged directly with Fergurson at Stormont, voicing concerns that an outright ban on fees could disrupt the financial sustainability of the sector.
LEGITIMATE BUSINESSS COSTS IN DOUBT
If agents are prevented from recovering legitimate business costs – such as contract amendments or key replacements – they may pass these expenses to landlords, who could in turn raise rents.
The organisation is advocating for a measured approach that distinguishes between exploitative practices and justifiable service fees. Rather than a blanket ban, Propertymark calls for clearer transparency in tenant charges, improved enforcement to deter rogue practices, and the ability for reputable agents to recover evidenced costs.
INCONSISTENCY
Henry Griffith, Policy and Campaigns Officer at Propertymark, says: “There is currently considerable inconsistency with how letting fees are charged in Northern Ireland.
“While the outcome of Paul Loughran vs Piney Rentals Limited confirmed that a tenant cannot be charged letting fees at the start or renewal of a tenancy where the tenant is being charged for services that were carried out on behalf of the landlord, we are aware that many agents continue to charge these fees.
“We therefore welcome the opportunity to legislate further, to provide the additional clarity.
“However, the Northern Ireland Assembly must be careful not to introduce a broad ban on fees that would lead to an increase in rents. Failing to take this into account would risk the legislation being unable to achieve its aims.”
CLARIFICATION NEEDED
Victoria Pinkerton, ARLA Propertymark Executive for Northern Ireland, adds: “Propertymark had a productive meeting with Ciara Fergurson MLA regarding her Private Member’s Bill on stopping unfair fees letting agents charge tenants in Northern Ireland.
“While we agree that the way letting fees are charged in Northern Ireland causes widespread confusion, there needs to be more clarification to prevent a surge in rents as a result of a general ban on fees, which would result in the legislation producing unintended consequences for both tenants and landlords.
“We look forward to playing an integral part on how this legislation will develop further to enhance the private rental market in Northern Ireland.”
