The National Consumer Agency has described a decision by one of the State's biggest estate agencies to increase its commission rate as "incredible".
Sherry Fitzgerald Group today confirmed it has increased its commission on residential sales in the Dublin area from 1 per cent to almost 1.5 per cent.
Ann Fitzgerald, chief executive of the National Consumer Agency
A spokeswoman for Sherry Fitzgerald said the company "did not disagree" that the decision was due to a slow-down in the housing market in the Dublin area. The company is expected to release a full statement later today.
Speaking on RTÉ radio this morning, Ann Fitzgerald, chief executive of the National Consumer Agency, described the decision as "incredible".
She said estate agents had had enjoyed ten years of a "gravy train" and were looking for an increase that amounted to 50 per cent after just six months of a downturn in the housing market.
A spokesman for the Irish Auctioneers & Valuers Institute (IAVI) said it had no comment to make on Sherry Fitzgerald's decision.
Ken MacDonald, managing director of Hooke and MacDonald, told
ireland.com
the company has no intentions of following Sherry Fitzgerald's lead.
"We have no plans to change our level of commission," said Mr MacDonald. "We are taking a different approach by trying to increase sales in the area."
John O'Sullivan a director of Lisney said its commission rates would not change. "Our policy on rates remains the same, we haven't changed our policy nor have we any plans to do so," he said.
Roger Berkeley of Berkeley & Associates, a Dublin-based estate agent, said that there had been eight months lost in the residential property market due to uncertainty over stamp duty.
Mr Berkeley said there was no doubt that immediate reforms on stamp duty, following the results of the general election, would positively affect the market.