Rental deposits to be capped at five weeks rent
The tenancy security deposits that tenants leave with landlords or their letting agents will be capped at a maximum of five weeks rent, and not the six weeks that had been previously been agreed.
The details were included as part of the Tenant Fees Bill, which the government estimates will bring an end to ‘costly’ letting fees and save tenants around £240m a year, based on its own figures.
The Bill will also give tenants greater assurances that the deposit they pay at the start of the tenancy cannot exceed five weeks’ rent. The cap on security deposits was initially announced in November last year during the chancellor’s Autumn Statement.
The Housing, Communities and Local Government Select Committee‘s report into the government’s Draft Tenant Fees Bill had previously recommended that the maximum security deposits be set at five weeks, but the government had reassured landlords and letting agents that the limit would be set at six weeks, until yesterday’s U-turn.