The Welsh Government is being urged to allow letting agents to still charge for referencing if it goes ahead with a fee ban.
A consultation on banning letting agent fees closes this month, and trade body ARLA Propertymark is warning of “unprecedented damage” to the rental sector.
David Cox, chief executive of ARLA Propertymark, said: “Any move to ban letting agents’ fees in Wales will cause unprecedented damage to the rental sector across the country.
“Independent analysis commissioned by ARLA Propertymark, following the UK Government’s announcement of its own ban, revealed that if a full ban was introduced, rents will increase by £103 per year which will only serve to financially punish long-term tenants.
“In our submission, ARLA is calling for fees associated with referencing to be left out of any ban. Right to Rent checks will soon be a service that agents in Wales will be required to undertake by law, so it is only right that agents should be able to recover the associated costs, given the time and resources needed to carry out such checks.”
The Welsh Government consultation was launched in July, a month after the English version closed.
The consultation asks a number of questions aimed at determining “which fees, if any, are justifiably being charged to tenants”.
It also seeks information on fees paid by landlords to agents, and on the possible consequences of a fees ban.
The consultation closes on September 27.
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