Lifetime Rental Deposit Plan Welcomed
Conservative plans to introduce a lifetime rental deposit plan – an idea first mooted by the RLA – has been welcomed.
The Conservatives made the announcement on ‘Lifetime Rental Deposit’ in an overnight press briefing.
Prime Minister Boris Johnson told journalists: “The costs of deposits make it harder to move. We are going to fix that.
“We will end no-fault evictions, so that landlords can’t remove tenants without good reason, and introduce lifetime rental deposits so renters don’t have to save up for a new deposit while their money is tied up in an old one.”
Better for landlords and tenants
Under the current system many tenants have to raise a deposit ‘twice’, when moving. One deposit is tied up in the property they are leaving, while the second is needed to secure the property they wish to move into.
The RLA believes it would be easier for all involved if a tenant’s deposit could follow them from property to property, with the tenant making up any shortfall caused by deductions.
The was idea first mooted by the association in 2017.
Cheaper and easier
David Smith, RLA Policy Director welcomed the announcement. He said: “We have long argued that deposits should be transferable.
“It will make renting cheaper and easier for tenants. It is vital though, that the detail of the plans ensure that both landlords and tenants can have complete confidence in how the lifetime deposit will work.
The pledge came the same day the Tories confirmed they will press in with plans to abolish Section 21 repossessions, plans announcer earlier this year, but absent from the Queen’s Speech.
Dr Smith said: “On the pledge by the Conservatives to end so called ‘no fault’ repossessions, we agree that the system needs to be reformed, but this needs to be done properly.
“Whilst any new system should protect tenants from the minority of landlords who abuse the current rights, it is important that good landlords can be confident that in circumstances such as tenant rent arrears or anti-social behaviour they can swiftly and easily regain possession of their property.
“We want to see comprehensive reform that works for both landlords and tenants. This should include setting up a dedicated housing court offering easy and inexpensive access to justice for both tenants and landlords.”
Written by Sally Walmsley