The National Approved Lettings Scheme has spoken out against calls by housing charity Shelter to ban letting agent fees in Wales.

Shelter did a mystery shop of 85 letting agents in Wales between January and March and claims more than half were not following legal requirements to display their fees clearly.

Overall, the highest fee was 12 times higher than the lowest.

Shelter said: “The sum total of this is an uncompetitive market which is failing to drive down prices for the growing number of individuals, couples and families in Wales who rely on private rented housing. This needs to change.

“In the face of these realities there is only one realistic solution – to ban letting agents from charging fees to tenants to establish a tenancy.”

Responding to calls for a ban, Isobel Thomson, chief executive of NALS, the voluntary licensing scheme, said: “We want a better, fairer, private rented sector for all, but banning letting agent fees in Wales is not the answer.

“Access to any form of housing tenure comes with associated costs, and renting in the private sector is no different. Letting agents are running businesses, and should be able to reasonably charge for the work they do in setting up a tenancy.

“There are many letting agents across Wales who provide an excellent service and stick to the rules, but the rogues need to be driven out.

“Trading standards and local authorities are responsible for enforcing the law on letting agents, and they must come down hard on any agent not displaying their fees.”