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Estate agents increase sales charges

Estate agents - Charges increased
Estate agents - Charges increased

The National Consumer Agency has criticised the decision by estate agents to increase the rate they charge on residential property sales.

Agents say they were able to let fees fall back during the housing boom because of the increased level of activity in the market; now they have reassessed what they charge relative to the amount of business they are doing.

The current stagnation in residential property sales has led to some estate agents putting up the rate of commission they charge on residential deals.

Sherry FitzGerald says it has put up fees because it is now harder to sell houses.

The company says it has had to increase its commission in the Dublin area from around 1% to 1.5% because it is taking longer to sell houses.

The increase means an extra €2,000 on top of the commission already being charged on the sale of a €400,000 house, and does not include VAT.

The National Consumer Agency has described the hike as an incredible decision after just six months of a downturn.

Speaking on RTÉ Radio's Morning Ireland, Chief Executive of the agency Ann Fitzgerald said the increase could not be justified.