Rental deposits to be capped at one month’s rent

by Property 118

9:42 AM, 22nd June 2017
About 2 years ago

Rental deposits to be capped at one month’s rent

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Rental deposits to be capped at one month’s rent

Responding to the announcement in the Queen’s Speech to cap tenancy deposits to no more than one month’s rent, Richard Lambert, CEO at the National Landlords Association (NLA) said:

“The decision to cap tenancy deposits at no more than one month’s rent smacks of a political gesture from a government desperate to court the voters who supported their opponents at the last general election.

“We estimate that around 40% of deposits exceed one month’s rent. Whilst capping them may reduce the move-in costs for some, it will increase the temptation for others to view the deposit as the last month’s rent, leaving landlords out of pocket at the end of the tenancy if, for example, the property has been damaged.

“Some landlords use a higher deposit to give them the extra confidence they need when letting to higher risk tenants, so this could also have the unintended consequence of deterring them from offering their property to those likely to be struggling with affordability in the first place”.



Comments

Roanch 21

8:52 AM, 5th July 2017
About 2 years ago

I don't dispute that this is being said but I myself can't understand how refusing to accept DSS discriminates against disabled people.

Who says disabled people cant work - I know lots that work full time. Assuming that disabled people can't work seems to be discrimination in itself.

Ian Cognito

9:00 AM, 5th July 2017
About 2 years ago

Reply to the comment left by "Roanch 21" at "05/07/2017 - 08:52":

I presume the issue is not to discriminate against those who receive disability benefits.

Roanch 21

18:10 PM, 5th July 2017
About 2 years ago

Reply to the comment left by "Ian Cognito" at "05/07/2017 - 09:00":

I was interested in your earlier comment, 'Yesterday I attended an RLA run “Principles of Letting” course. I learned that advertising “No DSS/DWP” is illegal as it can exclude the disabled who, as a consequence, are receiving benefits',

As far as I'm aware us Landlords don't discriminate against disabled tenants. Why would we? However we do have valid well documented reasons for avoiding DSS (including both able bodied and disabled) tenants.

But this isn't discrimination, it's choosing not to do business with people who are high risk and whose rent is paid by loony left wingers who are hostile and unhelpful towards us. Most people call it common sense.

Darlington Landlord

19:24 PM, 5th July 2017
About 2 years ago

Many get round this by specifying professional or employed only

Trevor Cooper

11:40 AM, 12th July 2017
About 2 years ago

I have a property for let at the moment. The agent just called to ask if we would accept a tenant with a cat. I said yes, but the rent would be £50 PCM higher. The tenant has come back and said no, but they are willing to pay a lager deposit.

So there we have it, a live example as of 12th July 2017 where we have a happy tenant because her request for us to take a larger deposit was accepted.

Ian Narbeth

11:47 AM, 12th July 2017
About 2 years ago

Fair point Trevor. However, given their "previous", we may anticipate that this so-called Tory Government will make the limit on deposits retrospective and will require landlords to repay the surplus to the tenant. This may be coupled with the usual sanction of 5 years in gaol or a £3000 fine for non-compliance!

Trevor Cooper

13:17 PM, 12th July 2017
About 2 years ago

Possible, but I would imagine it will be on new agreements as the contract we have made locks us in for the term, and the deposit amount forms part of that contract. I think they will take the simpler route of applying to new tenancys

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