The judgment by District Judge Gilpin was the final part of his decision in a test case brought by ex-student and housing rights activist Paul Loughran in respect of letting agent fees.

The case centred on the interpretation of article 3 of the Commission Disposal Lands (NI) Order 1986 relating to the payment landlord’s agent fees as a condition of granting a tenancy.

The 1986 Order also applies to landowners selling land who seek to pass on the professional costs which they incur to the buyer.

The decision may be challenged on appeal, but if stands it could have significant implications for individual agents and the lettings industry in Northern Ireland as a whole.

A spokesperson for Tughans said: “The industry will need to consider seriously the court’s decision and to decide collectively how best to deal with both the retrospective impact of the judgment, and the impact on the charging of letting fees in future.”