Abolishing letting fees will lead to a rise in rents, the National Party warns.
Tenants will no longer have to pay hefty letting fees when renting a new home under a bill introduced to Parliament this week.
The bill will make it illegal for letting agents or landlords to charge a letting fee, and allows for damages of up to $1000.
Tenants can be forced to pay a fee, usually a week's rent, on top of upfront costs of up to four weeks' bond and two weeks' rent in advance to secure a rental property.
Housing Minister Phil Twyford called the fees a "bizarre anomaly".