Plans to introduce a new lifetime tenancy deposit are outlined in Planning for the Future with a pledge to support good landlords who can, “continue to provide the homes the country needs”. It adds: “Ensuring renters are treated fairly through the Renters’ Reform Bill – we will improve security for tenants by abolishing the use of ‘no fault evictions’ so that tenants can put down roots in their communities and plan for their long-term future.”
The Ministry of Housing, Communities & Local Government document says it wants to deliver a rental system that is fit for the modern day – one that protects tenants and supports landlords. This will start with a planning white paper in the spring to modernise the planning system.
Although there are no details yet on how it would work, ARLA Propertymark says a lifetime deposit is likely to be welcomed by both tenants and landlords, while The Residential Landlords Association has long called for such a change, arguing: “It would be easier for all involved if a tenant’s deposit could follow them from property to property, with the tenant making up any shortfall caused by deductions.” ARLA believes that under the proposed system, a tenant’s deposit would follow them around from property to property, with the tenant liable to make up any shortcomings as a result of deductions.
One potential downside is how quickly any possible shortfall could be made up without affecting either the outgoing or incoming landlord – something the Tenancy Deposit Protection Reform Working Group was set up to explore.