Security Deposits cap increased to six weeks rent

Security Deposits cap increased to six weeks rent

13:40 PM, 1st November 2017, About 6 years ago 12

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The Government will extend a proposed cap on security deposits to six weeks’ rent instead of four, it has been announced today 1/11/2017.

The details were included in the publication of the draft Tenant’s Fees Bill. The Government first announced that they would introduce a cap on security deposits along with a ban on charging tenants fees almost 12 months ago, in the Autumn Statement 2016.

Initially the cap on security deposits was to be set at no more than four weeks’ rent. However, the Government now proposes to extend the cap to six weeks’ rent after concerted lobbying from the NLA.

Chris Norris, Head of Policy at the National Landlords Association (NLA), said: “At the time the NLA argued that an arbitrary cap of four weeks’ rent would be damaging to certain groups of prospective tenants and could have the counter-productive effect of making it harder for some households to secure suitable accommodation in the sector.

“Since the plans were announced we have been lobbying the Government and we met with the Minister of State for Housing and Planning, Alok Sharma MP, in September in order to press him to rethink his plans for a cap; taking into account the needs of those living and working in the private rented sector.

“The NLA is happy that the Government has listened to the evidence we presented on behalf of our members. Whilst we remain disappointed that the Government continues to believe a cap is necessary, extending it to 6 weeks rent will reduce those households and landlords disadvantaged by the policy significantly.”


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Comments

Rob Crawford

20:11 PM, 7th November 2017, About 6 years ago

Schedule 1 is quite clear as to what would be considered a permitted fee. Rent, Deposit and deductions form the deposit to cover the tenants' not meeting tenancy obligations. I don't see how a check-out would be a permitted fee! I think the title of this thread needs to change or new thread for the Bill created.

Terry

7:01 AM, 9th November 2017, About 6 years ago

Yes, however it has been a long established practice for the contract to state that the out going tenant must pay for professional cleaning of the carpets and appliances. Isn't this also making the tenant pay for third party services? Will this also be stopped?

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