The Lowdown On Transferable Deposits
One of the biggest challenges facing tenants currently is the upfront costs that are involved with renting a property. With the tenant fee ban meaning that agents are no longer allowed to charge potential tenants for any admin or referencing fees, this has helped slightly, but tenants are still having to find a security deposit before moving in. This can be especially difficult if they are already renting and will not receive their first deposit back before having to find the funds for a second one.
However, the Renters Reform Bill is legislation proposed by the government to allow tenants to carry deposits over from one tenancy to the next, negating the need for new funds to be found at each tenancy change.
The Renters Reform Bill was initially expected to be passed in 2020 but was then delayed due to Coronavirus. However, there has been talk that this bill could look to be passed soon, giving tenants more freedom on when they can move as they won’t need to save a new security deposit each time.
Although the details of how exactly the deposit will work are not yet clear, it is expected that the deposit will follow tenants from one property to the next and if there are any deposit deductions then the tenants will be expected to make up the shortfall.
Concerns on logistically how this will work and whether it could impact the ingoing or outgoing landlords have been raised by industry groups but full details are yet to be finalised and released by parliament.
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