At Housing Rights, we are aware of the increasing pressures in the private rented sector. Average rents in Northern Ireland are edging close to £1000 per month. In 2024, PropertyPal reported that supply was at “historically low levels.”
Jordan Buchanan, chief executive of PropertyPal, stated that, “Demand remains exceptionally high, with an average of 73 enquiries sent to estate agents for each advertised rental property.” The prospective renter knows this better than anyone. We’ve all seen the queues of people waiting to view properties across the country.
Estate and letting agents play a vital role in reducing the pressure on renters. Agents must treat applicants lawfully, transparently and with procedural fairness. Renters are entitled to have their applications treated fairly, and their agent to operate within the law.
Housing Rights works with estate/letting agents across Northern Ireland. Most agents are diligent, conscientious and committed to providing a good service. Unfortunately, we have also encountered agencies where renters are treated appallingly, and the agents themselves act unlawfully.
Northern Ireland is the only part of the United Kingdom without a dedicated regulatory framework for rental agents. This lack of regulation allows agents to operate with impunity and without accountability. A report from the Chartered Institute of Housing in 2024 notes that consumer protection laws act as, "the primary safeguard for tenants and landlords regarding unfair practices and contractual terms.”
In Scotland, Wales and the Republic of Ireland, letting agents must demonstrate that they are, “a fit and proper person” before operating as an agent. They are also required to undertake training or obtain a relevant qualification before practising as a letting agent. Continuing Professional Development is also required on a yearly basis. Agents in these jurisdictions must adhere to a Code of Practice, and indemnity insurance is mandatory. In England and Wales, agents must also sign up to a redress scheme.
In Northern Ireland, letting agents operate with limited regulation. Agents can voluntarily choose to register with the Property Ombudsman, but many do not. Housing Rights’ experience demonstrates that the current system isn’t sufficient to protect tenants and landlords from unscrupulous letting agents.
Housing Rights regularly advises tenants in respect of illegal evictions. In those cases, the letting agent has often issued an invalid notice to quit, contrary to the Private Tenancies (NI) Order 2006 and the Private Tenancies Act (NI) 2022. In these cases, the agent often isn’t aware of the requirement to issue a notice in writing and adhere to mandatory notice periods. In some shocking cases, the agent’s behaviour has amounted to harassment, contrary to the Rent (NI) Order 1978. There is clearly a lack of knowledge in parts of the sector, however our experience indicates that it is also possible that some agents are informed but choose to ignore the law.
Tenants who suffer illegal evictions often find that they have little recourse. If the agent isn’t registered with the Ombudsman, there is no way to lodge a formal complaint. Local councils can prosecute agents and landlords who break the law but, in Housing Rights’ experience, this power is rarely exercised. Local councils have no power to obtain injunctive relief to allow the tenant back into their property. Few tenants have the funds to obtain an injunction through a private solicitor and legal aid is difficult to obtain.
Despite the court’s ruling in the case of Loughran v Piney Rentals Ltd & F5 Property Ltd [2017] and guidance published by the Department for Communities in March 2020, Housing Rights are seeing that unlawful letting fees are still being charged by letting agents across Northern Ireland. That joint ministerial communiqué from the Ministers for Communities and Finance reaffirmed that such charges are unlawful and urged agents to comply, warning that further action may be considered if the practice persists.
In 2024, Renters’ Voice, working with the Chartered Institute of Housing, conducted a mystery shopping exercise with 120 letting agents. Renters’ Voice found that 36% of agents were still charging unlawful letting fees.
Competition for private rented properties is fierce. Unscrupulous agents who still charge application fees are taking advantage of desperate people. Our Advocates report having spoken to tenants who have paid £30-£40 for multiple applications. Applicants can refuse to pay a letting fee, but most don’t feel that this is an option. Prospective tenants fear their application will simply be tossed in the bin if they don’t pay. There is a clear power imbalance here: agents control access to something necessary and scarce, and renters, short on time and information, feel forced into paying.
Tenants can attempt to recover an illegal fee through small claims court. In Housing Rights’ experience, few tenants choose to do this. Clients on a low income often lack the funds to pay court fees. Many don’t have the time to lodge court proceedings and find the process daunting.
The Private Tenancies (NI) Order 2006 states that any deposits received by a landlord or their agent must be protected in a registered scheme. Despite this, Housing Rights regularly encounters cases where deposits haven’t been protected by the agent. Last year, Belfast City Council fined a landlord/agent £8,000 for failing to protect deposits. This is the first time City Council has taken this action since Councils were given new powers in April 2023. Under old legislation, Councils could only take action against a landlord within six months of the deposit being protected. The Private Tenancies (NI) Order 2022 makes failing to protect a deposit an ongoing offence.
City Council fines don’t benefit the tenant directly in any event. Money recovered through fines is not returned to the tenant so tenants must still apply to small claims court to seek the return of their deposit.
Housing Rights is aware of two cases where a rogue agent has asked prospective tenants to pay large sums of money to cover their rent in advance, and deposit, failed to protect the same, and subsequently changed their trading name to avoid accountability.
Single property landlords are also being targeted by rogue estate agents. We are aware of cases where these landlords have engaged the services of letting agents only to suffer financial loss when the agent fails to provide services properly. In some cases, the letting agent becomes the “tenant” of the landlord, sublets to another tenant and fails to pay their own rent and then disengages. Small landlords are then left to recover the debt incurred by the agent and suffer further financial loss.
Tenants and landlords in Northern Ireland deserve stronger safeguards and a more robust regulatory framework for the private rented sector.
