New proposal could see tenants ‘passporting’ deposits between landlords

Tenants deposits

Government proposals could see tenants being able to transfer rental deposits directly between landlords when moving from one property to the next.

The scheme is said to make renters lives easier as they won’t have to wait for a refund from their previous landlord to give to the next one.

 

The scheme, known as deposit ‘passporting’ is being supported by Housing Secretary, James Brokenshire, requesting the proposal at the Charted Institute of Housing conference last week.

 

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Brokenshire argues private rental tenants often find it hard to arrange a second deposit meaning that they might feel stuck in their current home or may even fall into debt.

 

“Freeing up deposits and allowing a renter’s hard-earned cash to follow them from property to property – as they move to take that perfect job, to move nearer to family, or find a place that suits their changing needs – will create a fairer housing market that works for all.”

 

The scheme would allow for tenants to save on upfront costs of moving between rental properties and still allow landlords to subtract money for any damage that may have been caused.

 

However, critics state the scheme may not allow enough time to resolve rental issues if the deposit is transferred too early, leaving landlords at a loss.

 

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Director of policy and practice at The National Landlords Association, Chris Norris said: “Freeing up deposits and allowing a renter’s hard-earned cash to follow them from property to property – as they move to take that perfect job, to move nearer to family, or find a place that suits their changing needs – will create a fairer housing market that works for all.”

 

He also stated that whilst the scheme has potential it shouldn’t be made obligatory.

 

London Mayor, Sadiq Khan previously put forward this proposal along with The Residential Landlord Association in response to the earlier Tenants Fees Act.

 

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Zynab Sandhu

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3rd July 2019