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TODAY'S OTHER NEWS

Lifetime Rental Deposits backed by Tories as Labour revamps council housing

On the day that Labour launches its proposals to reform the private rental sector, the Tories have announced so-called Lifetime Rental Deposits.

Details are still loose but a briefing to the media overnight quotes Prime Minister Boris Johnson saying“The costs of deposits make it harder to move. We are going to fix that. We will end no-fault evictions, so that landlords can’t remove tenants without good reason, and introduce lifetime rental deposits so renters don’t have to save up for a new deposit while their money is tied up in an old one.”

The new scheme would enable tenants to produce a digital certificate stating that their deposit is still tied up, with the money transferring to the new landlord only once the previous one has returned it. 

No details have been released as to how this system would operate when deposits are retained by landlords or agents against damage.

The Tories’ announcement comes as Labour reveals its housing manifesto today.

Details of its private rental proposals have yet to emerge but the main focus of the party’s housing proposals will be 150,000 affordable homes to rent being built each year.

These would be built by councils and housing associations.

Shadow housing secretary John Healey told HuffPost UK that young people on “ordinary” incomes would be eligible for the wave of new homes.

“Nye Bevan [the 1940s former Labour cabinet minister] talked of council housing as having ‘the living tapestry of mixed communities’ and he was right,” he said.

“We will build social homes not just for the poorest but for those on ordinary incomes, trapped young renters and young families that just want a start in life while they save for a deposit for their own home.”

This would be funded by spending around half of the party’s so-called Social Transformation Fund, based on borrowing £150 billion.

  • icon

    Sound like some more policies set to backfire on tenants .. when will these people learn to stop meddling to win votes

  • Simon Shinerock

    To work, this would require an underlying guarantee. Ending no fault evictions politically attractive but will do massive harm to the sector and therefore to the tenants that this change is supposedly protecting

  • icon

    '……...only once the previous one has returned it.'

    And if the previous one does not return it as it has been spent on rectifying damage...……………..

    icon

    In that event you, my friend, will have an installed tenant with zero deposit and previous history of high rent arrears and/or dilapidations!

     
  • jeremy clarke

    Does anyone in Westminster understand how the rental market works? I've said before, MPs should have to trial things for 3 years before introducing more ill conceived legislation. Make the MPs be landlords accepting a tenant on one of these schemes and see how they react when the previous landlord tells them there is no deposit money left and they have no protection!

  • icon

    These types of proposals simply and clearly illustrate how government has absolutely no idea how the letting process works

  • Suzy OShea

    Another half-baked idea from fluff-head Boris Johnson!

    All he cares about is winning votes no matter what the cost and the idiocy of the idea.

    How about making defaulting on rent a crime comparable to theft! How about making causing malicious damage to a landlord and other tenants equivalent to criminal vandalism and an imprisonable offence! Then we would not need no fault or any type of evictions because the bad tenants would be in prison. We might need more prisons though!

  • Paul Barrett

    As others have suggested more clueless ideas from the Tories.
    They clearly have no idea as to the business imperatives that the PRS is subject to.
    The mere idea that LL engage in non-fault evictions willy-nilly is for the birds.
    Clearly the Tory policy wonks have never had to endure the tortuous and very expensive Eviction process whether allegedly non-fault or otherwise.
    The process takes just as long!!!!
    No sane LL engaged in an eviction process without just cause.
    They know they will be losing bundles but evict to get rid of a miscreant tenant.
    S21 is also used to give NTQ just in case the tenant doesn't leave when they advise.
    This so at least the LL could start a PO process just in case the tenant doesn't vacate.
    Unless there is an equally effective process as S21 then more LL will sell up.
    Govt seems to believe it can force LL to remain invested with little control over their investment property.
    They will be soundly disabused of this idea as LL sell up or substantially reduce their property numbers.
    It is quite frightening as to how little Govt understands the PRS and what motivates LL to remain invested.
    The PRS has thrived precisely because of the control LL have been able to achieve.
    It seems Govt's of all persuasions fail to understand these basic concepts.
    They seem determined to proceed with these bonkers ideas
    Which is OK if you DON'T mind the PRS reverting to how it was in the 60 and 70's!!
    If LL are unable to effectively control their investments they will leave the AST market.
    They are already doing this such that it is impacting the availability of property for AST letting.
    So of course none of this assists tenants.
    Govt doesn't seem to understand any of this.
    I'm sure tenants WON'T thank Govt for the ever dwindling supply of rental properties!


  • icon

    Boris, you need to do a lot better than this stupid idea. Once bad tenants are entrenched their deposit will soon vanish in repairs. That doesn't have to wait until the tenant leaves. If it does happen then the landlord will be entitled to demand the deposit is bought back to the agreed amount. Will the government do that? The landlord will get the double whammy of having to force an eviction and fight off being sued for using the tenants deposit which the tenant will argue they the landlord entitled to.

    Landlords have legal rights as well. Why are all the very clever people forgetting that?

    If the government does bring in this scheme it will only be a very short time before the government will end up having to police bad tenants---------- and ---------- put them in council houses?

  • icon

    Trying to fix one problem by creating more problems.

    If this is the best they can come up with then they should just leave the PRS alone.

  • Bryan Shields

    Paws off the PRS in the interests of sanity of owners & renters.

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