Update: Auctioneers body argues €500 placement fee could lead to conflict of interest

Pat Davitt, IPAV’s Chief Executive, said his organisation has become aware of the development in recent weeks.

He said: “The HAP scheme makes a good and important social contribution and is badly needed in the current property crisis. This initiative by Local Authorities to incentivise letting agents speaks to the efforts they are making to secure properties for HAP recipients.

“However, an agent has a binding contract with those who engage them and can legally only act for that party in a transaction.”

If an agent who is acting for a landlord receives a placement fee offer from a Local Authority, such an approach would need to be declared to the relevant landlord, Mr Davitt said. The final decision is then up to the landlord.

Mr Davitt said: “It is, of course, open to Local Authorities to engage letting agents directly to secure properties on their behalf. In such instances, no conflict of interest would arise."

Earlier: Housing charity supports 'innovative' €500 placement fee for letting to homeless

Private letting agents are being offered a €500 placement fee if they rent properties to homeless families.

Staff from Dublin’s local authorities are approaching agents and offering them the fee once a HAP tenant moves into the home.

Almost 10,000 people are currently homeless nationwide.

Roughan MacNamara from Focus Ireland thinks it is an innovative approach to the crisis.

He said: "In the middle of a housing and homeless crisis there always needs to be innovative approaches.

"Focus Ireland is always calling for these, so it's refreshing because it's positive to see a government agency take this step to help families who are homeless or at the risk of becoming homeless to secure accommodation.

"We, for one, would fully support it."