Government U-turn on tenant deposit cap a loss of faith say landlords
Reducing the proposed cap on security deposits would make securing a tenancy harder for many, say the two largest landlord associations.
Responding to reports that the Government is to do a U-turn on its decision to cap tenancy deposits in rented housing at six weeks and reduce this to five, David Smith, Policy Director for the Residential Landlords Association said:
“If this is true, landlords will feel badly let down by a Government which says it wants to support good landlords. The Government had accepted that a cap of six weeks was the minimum many landlords require. This is needed to address the problem of tenants who fail to pay the last month's rent and leave a property damaged.
“Ministers claim that they want to cut the cost of renting yet this is another measure the Government is taking that will further cut the number of landlords and properties available as demand continues to rise, so actually driving up rents up.”
Richard Lambert, Chief Executive Officer of the National Landlords Association said:
“A six-week cap is the lowest landlords find acceptable. Does the Government really not realise that if landlords don’t think the deposit covers the risk of damage or unpaid rent, they will be even more cautious about who they let to? All this will do is make it harder for tenants with poor credit ratings or who want to have a pet to find a suitable home.
“This is clearly a political move aimed at the renters’ vote. It is not a policy for business.”