Clarity or overreach?
The Bill will seek to eliminate fees considered unreasonable or exploitative, following continued concern about the lack of clarity in current legislation and practices. It follows the precedent set in the 2017 Loughran v Piney Rentals Ltd case, where the court found that charging tenants for services conducted on behalf of landlords was illegal.
Ferguson suggests banning all tenant fees except rent, deposits, and a limited range of capped costs. While the goal is to protect tenants from hidden and excessive charges, feedback from a survey of Propertymark members has warned that a blanket ban could have unintended consequences.
Focus on fairness and transparency
Letting agents recognise the need to ease financial pressure on tenants. However, a wholesale prohibition of fees fails to recognise the real costs agents incur when tenants require additional services, such as ending a tenancy early, replacing lost keys, or making changes to a tenancy agreement mid-term.
Our position is clear:
- Recovering legitimate costs: Agents should be able to recover costs from tenants for services such as early termination, lost keys, or tenancy changes. Our survey of members in Northern Ireland found that 85% charged up to £25 in additional fees during an average tenancy—charges that reflect genuine services provided.
- Avoiding rent rises: 100% of agents surveyed said that banning all fees would force them to raise rents, either directly or by increasing charges to landlords who would then pass the costs to tenants.
- Transparency: We strongly recommend a model that prioritises transparency. Agents should itemise and evidence any additional fees to tenants, helping them make informed decisions and preventing abuse without creating new financial pressures.
- Fair enforcement: For reforms to work, enforcement must be effective. Propertymark has called for integration with the Landlord Registration Scheme, so tenants and landlords can easily report illegal fees, and authorities can ensure compliance.
We have also raised concerns about the scope of fees that would remain legal. For instance, we support banning charges for setting up utilities or TV licences—these often do not reflect real costs to the agent.
Planning for implementation
We are concerned that the current proposals suggest legislation would apply immediately to all new tenancies, not giving agents sufficient time to prepare. Of the members who responded to our survey, 64% said at least 12 months would be needed to implement changes responsibly.
Propertymark continues to engage with decision-makers in Northern Ireland to ensure any legislative change strikes the right balance. As the sector braces for potential changes, we will work to support members with guidance, insight, and updates to prepare to adapt.
We encourage all members operating in Northern Ireland to review our full consultation response and remain alert for further developments.
