Under the legislation, letting agents would be prohibited from charging tenants a fee to rent a property.
Currently, the fees charged to tenants are ‘often not clearly or consistently explained’, the government said in a statement.
The ban would also prevent agents ‘double-charging’ landlords and tenants for the same services. When the government consulted on the proposed ban, seven in ten tenants said letting agent fees currently affected their ability to move into a property.
The draft bill also proposes capping holding deposits at no more than one week’s rent and security deposits at no more than six weeks’ rent.
It also aims to to set strict rules on how and when holding deposits should be returned to tenants.
This is based on a recent consultation, the results of which can be seen here.