Cap could lead to more Landlord and Tenant disputes

Proposals to impose a cap on deposits paid by tenants could lead to a rise in disputes, the National Landlords Association has suggested.

Earlier this year, the Government published a draft version of the Tenants’ Fee Bill, which set out proposals for a potential cap.

If the plan suggested was to become law it would mean deposits are capped at no more than a week’s rent, with security deposits not exceeding a month’s rent.

Both the NLA and the Association of Independent Inventory Clerks (AIIC) have warned about the possible consequences of such a move.

Danny Zane, the joint chair of the AIIC, said: “A cap on security and holding deposits is certainly more positive than an outright ban as has been proposed for up front letting agent fees charged to tenants.

“However, we are concerned that as tenants will be committing less money to cover damages at the start of a tenancy, they may take a more laissez faire approach to the rental property, and landlords could therefore be left with more damage and repairs to deal with.”

Concerns are exacerbated by the fact that, at present, some landlords tend to request higher deposits to cover high-ticket items.

If you require advice on any aspect of property litigation, please contact the Joelson team or click here for further details about our full range of services.

This article is for reference purposes only. It does not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any action.