.
The Consultation
In February 2025, Ciara Ferguson MLA launched a consultation on a Private Members’ Bill on unfair letting fees. The Bill would, if it was enacted, ban unfair letting fees being charged by landlords or letting agents.
As noted in the Derry Daily, the Bill would mandate the Department for Communities to develop guidance for landlords, agents and tenants. This guidance would set out clearly the payments which must not be charged to tenants.
The consultation closes on 12 May 2025.
Our Response
On Thursday 1 May, Homeless Connect made our submission to the consultation. The key points we made in our submission include:
- For households at the bottom of the income scale looking for housing in the private rental sector (PRS), letting agent fees are an additional cost. This can pile pressure on households who are already struggling.
- The current legal position is clear that, as a Communique from the Departments of Communities and Finance puts it, “a landlord, or an agent of the landlord, cannot oblige a tenant to pay for the professional services provided by their agent.” However, in spite of this fact, there is strong evidence provided in research conducted by the Chartered Institute of Housing that letting agent fees continue to be charged by several letting agents.
- As the representative body for the homelessness sector, our primary concern is the prevention and alleviation of homelessness. We believe that letting agent fees can have a negative impact on households at risk of or experiencing homelessness. This is because such fees can create barriers to accessing PRS properties. Consequently, we support steps which would see the levying of these fees ended.
- It is important that if a legislative proposal is brought forward, that it provides a clear and straightforward enforcement mechanism. We recommend the Bill Sponsor considers options around Alternative Dispute Resolution as she looks to develop her proposal.
You can read our full response here.
