The new levy on the erection of "For Sale" signs on houses passed by North Tipperary County Council was condemned by auctioneers and construction and consumer groups yesterday.
The council will place a €630 levy on "For Sale" signs in public places from October. Auctioneers will only be able to place licensed signage for the sale of properties.
Yesterday, the move was criticised by Mr Dermot Jewell, of the Consumers Association of Ireland, who said for consumers it was a step backwards.
"The consumer will ultimately pay," he said.
Already for a lot of people there was an almost impossible burden when buying a house, and now we have a ridiculous charge within that purchase.
"The frustration of it is that the consumer can do very little about it. There is no element of choice; they are presented with a situation where they can take it or leave it."
It would be a serious problem if other local authorities followed suit, Mr Jewell added.
Mr Liam O'Donnell, chief executive of the Institute of Professional Auctioneers and Valuers (IPAV), said it was hard to believe that a local authority could enforce such a regulation.
"Ultimately it's the house holders who will pay. It is most unfair. If they have a problem local authorities should look to the IPAV or other auctioneers' representatives. This is not the way."
His understanding was that in various regions there had been co-operation between local authorities and estate agents about signs. This type of co-operation was brought about by the local authority enforcing the Litter Act. Mr O'Donnell asked if now they were giving a licence to litter. It needed looking at.
A Construction Industry Federation spokesman said this was not the only levy that local authorities were putting on.
"More fees are going to be put on, and it's the purchaser who is going to be caught. There is a huge effort on to try to keep house prices down but this levy is just putting more on again."
He said it would not affect the builder, but the auctioneer would pass it on to either the buyer or seller.
"We are concerned at insurance costs, development fees, wage levels. This levy seems very excessive," he said.
A Department of the Environment spokesman said it was a matter for each local authority whether they enforced the levies.