A future ban on letting agent fees will ultimately be paid for by tenants, according to new claims.
It is expected that many lettings agents will compensate for any losses experienced as a result of the ban by passing on the costs to landlords, who in turn will need to recover their costs elsewhere.
This is likely to be through higher rents, the Association of Letting Agents (ARLA Propertymark) has suggested.
The proposed plan to ban letting agent fees was initially announced towards the end of 2016 and a Tenants’ Fees Bill which will stop tenants having to pay money to agents was announced in the Queen’s speech in June.
The Welsh government has also launched a consultation on proposals to ban letting agents from charging fees to tenants.
David Cox, chief executive of ARLA Propertymark, has said that the ban on tenant moves or any other similar legislation will cause “unprecedented damage to the rental sector” across the country.
He commented: “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.”
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