No reason tenants pay letting fees, says report

RESEARCH carried out for the Welsh Government recommends that AMs should consider a ban on letting fees charged to tenants when they rent new homes.

A public consultation is under way about a proposal to make charging such fees unlawful.

Some landlords defend the fees, saying they cover work done by letting agents.

But the research document states: “There is... no compelling evidence as to why tenants should pay the fees rather than the landlord.

“The large majority of the work undertaken by agents is work that the landlord would otherwise be doing themselves.

“Referencing tenants is a service to landlords, not tenants.

“Inventories and tenancy agreements do protect both parties from false accusations but it is soon to be a legal obligation on the landlord to provide a tenancy agreement, and therefore it is a service to the landlord to do this job for them.

“Arranging viewings and advertising a property are also a service to landlords, just as a job advert is paid for by the employer, and estate agents charge sellers, not buyers, to advertise their home.”

The research findings were welcomed by Plaid Cymru’s Shadow Secretary for Housing, Bethan Jenkins, who said: “There is no excuse for the Welsh Government not to ban letting agent fees. Plaid Cymru first tried to stop letting agents charging unnecessary fees almost two years ago but our efforts were opposed by the Labour government.

“The Labour Welsh Government has been embarrassed even further after even the Tory government in Westminster has proposed a similar ban and as a result the Welsh Government was shamed into exploring the possibility of introducing a ban in Wales.

“With Scotland having banned fees back in 2012, Labour’s current policy means that Wales risks being the only nation in the UK where estate agents are allowed to charge renters.

“The research commissioned by the Welsh Government confirms Plaid Cymru’s view and it confirms what tenants and landlords have been saying for years – these fees are excessive, unfair and can expose renters to exploitation.”

Last week Communities and Children Secretary Carl Sargeant appealed to tenants to participate in the consultation, saying most responses were from landlords: “I want to know the extent of the fees charged, what those fees cover, and understand the implications of the removal of these fees.”