Propertymark has warned that any move to control letting agent fees charged to tenants in Northern Ireland (NI) must consider the financial impact on both landlords and letting agents.
Ciara Fergurson, Member of the Legislative Assembly (MLA) for Foyle, has consulted on a Private Member’s Bill aimed at stopping unfair fees for tenants.
The bill is intended to make renting more affordable and accessible.
A consultation ran from March to May to find out which fees tenants faced most, and what both agents and tenants thought was fair.
Propertymark’s Policy and Campaigns team, together with property agents and Northern Ireland member executives, met Fergurson at Stormont to discuss the plans and provide feedback.
Propertymark said that agents need to recover costs for services like replacing keys or amending contracts.
If they cannot charge tenants for these services, they may increase fees to landlords, who could then raise rents.
Only evidenced costs should be recovered, according to the group.
Propertymark added that the main focus of any new law should be on transparency and clarifying current rules, rather than a blanket ban on all fees.
The organisation called for stronger enforcement to stop some agents charging unreasonable fees, while others cannot recover genuine costs.
Additionally, Propertymark said tenants might be afraid to report fees because they fear losing their home or facing legal battles.
Henry Griffith, policy and campaigns officer at Propertymark, said: “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.”
Griffith added: “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.”
Victoria Pinkerton, ARLA Propertymark executive for Northern Ireland, said: “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.”
