Renters get relief as Government bans letting fees - 'They have no economic rationale'

Letting fees are set to be banned, after the Government passed legislation to see an end to the fee. 

"Letting fees are unfair," Housing Minister Phil Twyford said in a statement. 

"They have no economic rationale and there is no relationship between the amount of the charge and cost of the services provided."

The Residential Tenancies (Prohibiting Letting Fees) Amendment Bill passed its Third Reading to halt the fees, with Mr Twyford saying the timing of the ban intends "to give tenants a break before we enter the summer rental season when so many tenancies turn over". 

"When moving into a new rental property, tenants can face up to four weeks' bond, two weeks' rent in advance, and one weeks' rent as a letting fee, in addition to moving costs."

The ban will be implemented from December 12. 

He said the ban was a "good first step" while the review of the Residential Tenancies Act takes place.