Call for clampdown on property auctioneers' fees

The Government must introduce legislation to regulate auctioneers and estate agents operating in the property market, the Dáil heard tonight.

Labour leader Pat Rabbitte said it was an outrage that auctioneers want to increase their fees by 33% because the housing boom is slowing down.

The Institute of Professional Auctioneers and Valuers (IPAV), which represents more than 800 agents, has said that commission rates are among the lowest in the EU.

He said: “This is a disgrace. After all the money they have creamed off in the last 15 years, they are thinking of putting up their fees by 33%.

“It is an outrage and the Government needs to act on it.”

However Taoiseach Bertie Ahern said the Property Services Regulatory Authority (PSRA) would be established in legislation soon and would act as a watchdog for auctioneers and estate agents.

But Mr Rabbitte said: “Is the Taoiseach going to permit this situation where the process of buying and selling an average house will rise from €5,250 to €7,000 on top of all the charges that young people have to pay.

“I don’t recall the auctioneers reducing the commission when housing prices were going up. It seems to me that the same amount of work is involved whether the price of the house is a million euro or at the average level.”

Mr Rabbitte said buying and selling a house was a fraught and harrowing experience for young people.

“Why is it that your government will defend and protect the interests of developers or anybody with money?” he asked.

The Labour leader called on the Taoiseach to ask the Competition Authority to examine the market.

But Mr Ahern added: “We have proposed legislation on the way.”