Proposed Northern Ireland Bill aims to limit unfair letting fees

A new Bill being proposed in Northern Ireland aims to address excessive fees being charged to tenants by letting agents in the private rented sector.

The Private Member’s Bill, spearheaded by Ciara Fergurson, the MLA for Foyle, seeks to ensure renters are not burdened with unreasonable costs.

Now Propertymark has voiced its concerns about the potential repercussions of the Bill – which include potential rent rises.

The organisation, which met with Ms Fergurson at Stormont, stressed the need to balance tenant protections with the financial realities being faced by landlords and agents.

A consultation on the Bill, which took place between March and May, explored which fees tenants frequently encounter and what both parties consider reasonable.

NI letting fees

Propertymark’s policy and campaigns officer, Henry Griffith, 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.”

He 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.”

Rents could rise

The Bill’s main aim is to eliminate unjust charges, but Propertymark cautions that prohibiting agents from recovering legitimate business expenses could lead to unintended consequences.

Services such as replacing lost keys or amending contracts incur costs for agents, and if these cannot be recouped, agents may raise fees to landlords, who could then pass these onto tenants through higher rents.

Instead of a blanket ban, Propertymark advocates for greater transparency and clearer regulations.

Tenants should be fully informed about additional fees beyond rent and deposits, enabling better decision-making and preventing unexpected or unlawful charges.

The organisation also calls for stronger enforcement to ensure compliance across the sector, warning that without it, responsible agents could be disadvantaged while unscrupulous ones continue exploitative practices.

Unfair fees being charged

Victoria Pinkerton, the 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.”

She added: “We look forward to playing an integral part on how this legislation will develop further to enhance the private rental market in Northern Ireland.”