“No-fault” evictions will be banned, processing fees waived and the cost of breaking a lease capped at four weeks’ rent under new reforms proposed by the Victorian government.

After unveiling a series of housing policies and pledging to “be the prime minister who gave millennials access to housing”, Jacinta Allan added six new promises, this time aimed at making rental more equitable.

Under planned reforms, which will be presented to Victoria’s parliament over the next 12 months, landlords will no longer be able to evict tenants on fixed-term contracts without reason.

But tenants may still be forced to move out for reasons such as damage, non-payment of rent or if landlords wish to move back into the property.

Owners will need to provide proof of deposit requests

“Questionable” bond applications are also under the spotlight, with the state government considering requiring proof such as photos or receipts, and imposing financial penalties on those who make mistakes.

A report released earlier this year by a Melbourne community law firm, drawing on the experiences of hundreds of tenants over two years, found too many landlords were making unreasonable claims on their tenants’ deposits.

The government is also seeking to crack down on landlords who leave their tenants at the end of a contract and then raise prices.

He wants to discourage this practice by prohibiting landlords from evicting their tenants without cause after the end of their first fixed term.

Another key government promise is to limit lease termination fees to fair and reasonable compensation for lost rent, capped at a total of four weeks’ rent.

This would apply to fixed-term rental agreements of five years or less, with one month’s rent due for each month remaining – until the cap is reached.

Meanwhile, an already tight Victorian rental market is showing no immediate signs of improvement, with the state experiencing the biggest decline in rental stock since record keeping began in 1999.

Real estate investment groups say previous rounds of tenant-friendly reforms — including new minimum standards — have fueled an exodus of landlords out of the state.

Rent reforms are about respect, says Jacinta Allan

The Prime Minister said tenants’ rights were “a matter of respect”.

“This is the principle that we are trying to introduce into the rental market through more than 130 reforms, and that is why we are leading the country in this direction.”

Other government rental reforms include banning agents, providers or third-party apps from charging extra processing fees if they want to check a tenant’s rental “blacklist” history.

The reforms, if passed, would also prohibit third-party “rental tech” apps from charging hidden fees, instead making it free to pay rent digitally or in person.

Finally, the Allan government has committed to changing the law so that any tenant who loses a security fob or electronic key must receive a replacement if they request one.

“More money” in tenants’ pockets

Consumer Affairs Minister Gabrielle Williams said the reforms would put “more money in the pockets of renters”.

“These reforms firmly place Victoria at the absolute forefront of rental rights in this country – we’ve heard what tenants are saying and we’re taking action.”

Jennifer Beveridge, chief executive of Tenants Victoria, said the not-for-profit organization welcomed the measures, which would help protect the rights of almost 30 per cent of Victoria’s tenants.

“After all, housing is an essential service and a human right,” Ms Beveridge said.

“Extending the ban on evictions without cause gives tenants more security. It puts them on an equal footing to seek repairs, for example, knowing that landlords cannot ask them to leave without cause by under the law.”

Banning no-fault evictions will likely be one of the first reforms considered, with the state government planning to introduce the reform to Parliament before the end of this year.