Shadow Housing Minister wants 3 week deposit maximum

Shadow Housing Minister wants 3 week deposit maximum

10:24 AM, 8th June 2018, About 6 years ago 19

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Under the current Tenant Fees Bill the proposed maximum tenant deposit will be 6 weeks rent. However, Shadow Housing Minister, Melanie Onn, wants this to be a 3 week maximum saying: “Labour is fighting for a new three-week limit for rent deposits. The current deal for private renters is unacceptable. Labour in government would do more to protect them.”

David Cox, Chief Executive of ARLA Propertymark, pushed back telling the Property Industry Eye:

“As I laid out to the Public Bill Committee on Tuesday, the purpose of the deposit is to mitigate against unpaid rent and damage to the property. Many tenants do not pay the last month’s rent which is then covered by the security deposit.

“This amendment won’t allow for that, which risks leaving a landlord without the full final month’s rent or repairs for any damage. It’s not clear how this proposal of three weeks’ deposit has been worked out.”

The Tenant Fees Bill is still receiving evidence until 5pm June 12th and has had it’s second reading in Parliament.

Many Property118 landlords are now saying they prefer not to take deposits due to the hassle involved with deposit protection and arbitration and are instead looking to rely on guarantors. This would definitely increase if the deposit didn’t even cover one months rent.


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Comments

Michael Barnes

22:52 PM, 8th June 2018, About 6 years ago

Reply to the comment left by Chris Daniel at 08/06/2018 - 22:44
That is not "incorporated and large landlords", that is social housing providers.

Mandy Thomson

8:47 AM, 9th June 2018, About 6 years ago

What about replacing deposits with damage insurance where landlords and tenants both pay an affordable premium towards?

AA

10:33 AM, 9th June 2018, About 6 years ago

Reply to the comment left by Mandy Thomson at 09/06/2018 - 08:47
What happens when you claim on a policy ? Your premium goes up ! And if you make enough claims you wont be able to get any. And why should the landlord pay for the actions of a tenant ? 3 weeks deposit ? Rents go up to cover the risk.

Michael Holmes

13:47 PM, 9th June 2018, About 6 years ago

Reply to the comment left by Dylan Morris at 08/06/2018 - 11:48
Might as well go the whole hog and pay the tenant to stay in your property rent free and also his course fees for re-training in his job!

Darren Peters

14:12 PM, 9th June 2018, About 6 years ago

Perhaps there's a business opportunity for someone to make a fixed fee streamlined service for Landlords - meticulous entry and exit inventory right through to civil action & CCJs. Monetized along the lines of an insurance scheme with an assumed percentage of contracts needing court appearances.

Or am I being idealistic and courts wouldn't entertain the idea of tenants causing damage?

Chris @ Possession Friend

15:10 PM, 9th June 2018, About 6 years ago

Reply to the comment left by Darren Peters at 09/06/2018 - 14:12There are already a number of deposit insurance ( replacement ) companies offering this. The ‘premium’ is around £150 but, who knows whether it would be any easier getting an Insurance company to cough up rather that a Deposit scheme. !

Jay James

16:57 PM, 9th June 2018, About 6 years ago

Reply to the comment left by Michael Barnes at 08/06/2018 - 22:52I have in the recent past checked a number of Social Housing providers and they were all incorporated and and all large.

I did also consider putting 'all landlords' to level the field for both tenants and landlords.

David Nic

17:40 PM, 9th June 2018, About 6 years ago

What a ridiculous ill thought through labour policy. For many landlords they will just rent to those with cast iron guarantors or qualify for rent guarantee insurance.
It will be the vulnerable who will lose out. If people can't make a commitment of 4 to 6 weeks deposit then don't rent. Burden will just shift more to the state.

T G

6:51 AM, 11th June 2018, About 6 years ago

These idiots get paid a fortune and this is what they come up with! Temporary Accommodation is now the fastest growing area of housing, isn't it?!

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