How much deposit should a tenant pay?
29th March 2018
MPs and landlords can't agree over the acceptable level of deposits demanded of tenants in England.
Deposits should be capped at five weeks' worth of rent, according to the Housing, Communities and Local Government Committee.
But landlords' groups believe that six weeks' worth is realistic, otherwise "riskier" tenants could be blocked, as reported by the BBC. For example, the National Landlords Association (NLA) said a smaller deposit would make landlords less willing to allow pets "by removing their flexibility to take a higher deposit to cover for pet damage".
Initially, the government had favoured a much more stringent cap on landlords, planning to allow them to charge just four weeks' worth of rent as a deposit.
The disagreement has emerged during scrutiny of the government's draft Tenant Fees Bill. The law change is aimed at protecting tenants, by introducing a ban on fees imposed on tenants by landlords and letting agents in England. A ban is already in place in Scotland.
The committee argued that deposits of six weeks' worth of rent could cause financial difficulties for tenants. At five weeks' worth, the private rented sector would become more affordable, while also giving landlords protection from rogue tenants.
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