Hunters founder-turned-Conservative MP Kevin Hollinrake was among MPs who helped the Tenant Fees Bill sail through its report stage and third reading yesterday, despite admitting it would lose him money.

Speaking during the latest debate on the Tenant Fees Bill, Kevin Hollinrake, MP for Thirsk and Malton, referred to Hunters, admitting “the legislation will cost me more than I care to think of” and that it “kept the finance director awake at night,” but said he still backed the backed the legislation.

He said: “A tenant chooses a property, they have no choice about who their lettings agent is.

“There is not currently a free market here.”

His views came as the Government put forward several amendments to the Tenant Fees Bill – with the main change clarifying how default fees can be charged, with landlords and agents required to produce receipts and invoices.

ARLA Propertymark said it was “disappointed but unsurprised” that the Bill passed.

David Cox, chief executive of ARLA Propertymark, said: “Over the summer, we worked with Daniel Kawczynski MP on his amendment to allow agents to charge up to £300.

“Although the amendment was unsuccessful, this shows that members involved in ARLA Propertymark’s campaign have helped MPs understand the unintended consequences of the tenant fee ban; with some MPs listening to the legitimate concerns of the industry. As the Bill moves into the House of Lords we will continue working to ensure Parliamentarians understand the impact the ban will have on the whole private rented sector.”

MPs voted against calls from Labour to increase the maximum fine for ban breaches from £5,000 to £50,000, but overall most supported the Bill across the House of Commons.

However, the Government still faced criticism from some of its own party members.

Kawczynski, Tory MP for Shrewsbury and Atcham,  said the Bill was in opposition to Conservative values.

He said the party was about “less regulation, less red tape and less taxation to empower entrepreneurship,” claiming the ban did the opposite.

Kawczynski suggested a cap would have been better, claiming the ban calls into question whether the Conservatives are a pro-business party and tips the balance in the sector towards the tenant.

He added: “There is a fear that the fees will just go on to the rents, which is less transparent.”

A fellow Tory, Sir Christopher Chope, MP for Christchurch, described the Bill as a “direct attack on lettings agents,” asking how charging tenant fees was different from doctors charging for writing letters.

He said the Bill would not be needed if laws were properly enforced.

Chope said the legislation was “not a Conservative Bill” and described it as an “exercise in socialism and control”.

He said: “It is already difficult for tenants on housing benefit or those without clear citizenship to rent and these things will become a lot more difficult.

“There is too much crowd pleasing on the part of the Government and not enough recognition of those in the private sector.”

In one of the main changes, the Government rejected calls to ban default charges as part of the tenant fee ban, but the Bill will require landlords and agents to provide proof of their costs.

The Bill originally said tenants could be charged a reasonable default fee for any item as set out in a tenancy agreement, such as replacement keys.

But Parliamentary Under-Secretary of State for Housing, Communities and Local Government Rishi Sunak told MPs yesterday that a landlord or agent will only be able to recover “reasonable incurred costs” and must provide evidence to the tenant before they can impose any charges such as an invoice or receipt.

In a further change, landlords and lettings agents will have to repay unlawful fees within seven to 14 days, as determined by an enforcement authority.

The Government also clarified that tenants could still pay for the services of a relocation agent as long as the firm isn’t working for the landlord who ends up housing the renter.

Sunak told MPs: “This Bill is not about driving agents out of business.

“It is about levelling the playing field so the small minority of bad actors can’t continue at the disadvantage of the of majority who do a valuable job.”

During the debate, shadow housing minister Melanie Onn was forced to deny that the Labour Party wants to see the end of the entire private rented sector

This was after Kawczynski  disclosed that a Labour politician had told ARLA Propertymark that the entire private rental sector (PRS) should be banned.

Kawczynski said: “One newly elected Labour member, who I will not name, said ‘I am not interested,  I want the whole private sector banned’.

“That is the sort of prejudice we are having to deal with and it is important the private rental sector is supported.”

Onn insisted a ban on all agents and private landlords is not official Labour policy.

She said: “There is no suggestion to do away with the PRS. This is about shifting the balance a little bit more in favour of tenants who so far have had a very bad deal.”

Speaking as the Bill progressed through its third reading, Housing Secretary James Brokenshire, insisted the changes would create a “level playing field” for lettings agents against rogue firms.

He said: “Agents who offer good value and high quality service will continue to be in demand and play an important role.

“This is about creating a professional and affordable private rented sector for tenants and also decent professional lettings agents providing a vital service.”

The Bill will now be considered by the House of Lords. No date has been given for when the ban will come in but it is expected to be next April.