Tenant deposit cap is cut to 5 weeks by government!Make Text Bigger
The government has now confirmed it will cut the maximum deposit for rentals of less than £50,000 from 6 weeks to a 5 week maximum. The 6 week maximum will still apply for rentals over £50,000 per year.
This decision as part of the Tenant Fees Bill was criticised the day before by the RLA and NLA: Click here to see the article.
James (Broke thehousingmarket shire), Communities Secretary announced: “Today’s amendments will make renting a home of your own more affordable, fairer and more transparent enabling tenants to keep more of their cash and stopping unexpected costs.
“Everyone deserves a home to call their own. Yet for some renters, moving to a new house can be difficult due to high upfront costs and letting fees. This is unacceptable. I want to see a housing market that truly works for everyone, and one which provides a better deal for renters.”
He also confirmed: “Landlords and agents will not be able to write lots of different default fees into a tenancy contract and tenants cannot be charged hundreds of pounds for a damaged item that actually only costs a few pounds to replace.”
Default fees will only be allowed to be charged by landlords or agents for late payments of rent or lost keys.
David Cox, Chief Executive, ARLA Propertymark responded to the news by saying: “Once again politicians are attacking the industry for their own purposes. Tenancy deposits have worked perfectly well for over a decade, and there is no basis in research that these amendments are necessary. This move will do nothing but push the most vulnerable in our society away from professional landlords and agents, and into the hands of rogue landlords and agents who will exploit them.”
David Smith, Policy Director for the Residential Landlords Association said: “In doing a complete about turn on this, it is unfortunately vulnerable and elderly tenants who will suffer, just as Ministers stated when they initially approved a six week cap. Those who will now find it more difficult to secure a home to rent will include those on benefits and those who have a pet as a companion.
“In May, Ministers argued that a cap of six weeks offered a balance between affordability benefits and financial risk to landlords and providing confidence for them to rent to higher risk tenants. They considered that a 5 weeks cap did not offer that protection. Nothing appears to have changed since so Ministers were right then and wrong now.”
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