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The Welsh Government has launched a consultation on proposals to ban letting agents from charging tenants fees.
First minister Carwyn Jones committed to a Fees Charged to Tenants Bill in the Senedd last month.
The consultation document states that “unjustified and arbitrary” fees risk making the private rented sector unaffordable.
“I believe the time has come to ask serious questions about the future ability of anyone to charge fees to tenants when they enter into a tenancy,” said Carl Sargeant, communities and children secretary for the Welsh Government.
“To ask tenants to come up with a tenancy deposit, which is often in excess of a month’s rent, plus a month’s rent upfront and an ‘administration’ fee, can cause a major financial headache for some and has the potential to drive people into debt.
“I want to know the extent of the fees charged, what those fees cover and understand the implications of the removal of these fees for letting agents, landlords, tenants and any third parties involved in the private rented sector.”
The consultation closes on 27 September.
Scotland has already banned tenant letting fees, while the English government has committed to similar measures.