RLA: Government should crack down on tenants as well as landlords

 

Rent cheats could benefit from the government’s plans to cap deposits at six weeks’ rent, according to the Residential Landlords Association (RLA), meaning landlords might end up out of pocket.

The RLA has described the changes set to be introduced in the Draft Tenant Fees Bill, which includes setting a maximum security deposit at six weeks’ rent for all properties, as providing a “charter for rent cheats”, with supporting research showing how 40% of private landlords have reported their tenants not paying their final month’s rent in the past three years.

The Bill is intended to make renting fairer and more affordable for tenants, and other measures proposed include the introduction of a lead enforcement authority in the lettings sector, and allowing tenants to see upfront all the costs of a given property.

But reducing security deposits, the RLA argues, could be to the detriment of landlords whose tenants fail to make rental payments, as well as those who leave properties in various states of disrepair which are then paid for through the security deposits.

Missed opportunity for reform

David Smith, policy director for the RLA, believes that government ministers ought to focus on the issue of tenants who fail to pay rent just as much as they do on cracking down on rogue landlords.

He added: “It is not unreasonable that landlords should have the security to know that funds are available to cover the unacceptable practice of those tenants who do not pay their rent at the end of the tenancy and, in some case, leave the property in an unacceptable state.

“In a quest for quick popularity, the government’s plans risk becoming a missed opportunity for fundamental reforms to improve tenants’ ability to access rented housing.”

The RLA would like the cap for security deposits to be set at eight weeks rather than six, and is also calling for the government to look into modernising the current deposit system so that the funds can be transferred from one private rental property to another if they move house, rather than tenants having to raise a new deposit as they await the repayment of their last one.

CityGreens, Solihull, Birmingham

City-style apartments directly on Birmingham's largest park

  • Limited pre-launch prices.
  • ZERO ground rent
  • Excellent tenant demand

£182,000 - £419,000

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

buy-to-let rental contract rental yields

RLA: Government should crack down on tenants as well as landlords

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.