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 (Housing Assistance Payment) tenant moves into the home.

The Dublin Region Homeless Executive says it acknowledges there is too much reliance on the private rental sector, but suggests there is 'no alternative' to help homeless families until there is a sufficient increase in the supply of social housing.

Almost 10,000 people are currently homeless nationwide, the vast majority of whom are in Dublin.

Roughan Mac Namara from Focus Ireland thinks 'placement fees' are an innovative approach to the crisis.

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

"It's refreshing and it's positive to see a Government agency take this step to help families who are at risk of becoming homeless or are homeless to secure accommodation... we for one would fully support it."

However, concerns have also been raised that such payments could lead to a potential conflict of interest.

The Institute of Professional Auctioneers & Valuers observed: "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.

"It is then up to the landlord to make the decision as to whether or not they are happy with the situation."

However, the organisation's chief executive Pat Davitt added: “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."