Consultation on Residential Tenancy Deposit Reform
Reasons to choose Wilson Browne
Tenants in the private rented sector (PRS) usually provide a deposit when taking a tenancy.
If a tenant wishes to move, there is often an overlap between a tenant paying a deposit for the new tenancy and receiving their deposit back from the landlord of the previous tenancy.
The government is concerned that this overlap may have an adverse effect on tenant mobility, particularly the most vulnerable tenants in the PRS. For example, tenants may be unable to move areas to take a new job, be forced to remain in properties that are in poor condition or resort to using high-cost credit to fund the second deposit.
The government has published a consultation to determine the extent of the problem and obtain views on possible solutions to it. Possible solutions include placing landlords under a deadline for the return of deposits or a system of “passporting” the deposit from the first tenancy directly to the second tenancy.
The consultation also seeks views on whether wider improvements should be made to tenancy deposit protection.
The consultation applies only in England and closes on 5 September 2019.
If you are a Private landlord and need some Specialist advice, please contact us.
Posted:
Tom Warrender
Partner
Tom is a Solicitor and Partner with 15 years + experience advising clients in relation to commercial property matters. A Legal 500 recognised lawyer, Tom is a member of SHLA and CRELA, sits on our Board of Management & Heads our Social Housing Team.