Posts with tag: tenancy deposit cap

RSPCA and Cats Protection Voice Concerns on Tenancy Deposit Cap

Published On: July 7, 2017 at 9:25 am


Categories: Property News

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RSPCA and Cats Protection Voice Concerns on Tenancy Deposit Cap

RSPCA and Cats Protection Voice Concerns on Tenancy Deposit Cap

Following the announcement in the Queen’s Speech that the new Government will introduce a tenancy deposit cap, landlords have raised concerns over whether it will restrict tenants with pets finding rental properties.

Now, the RSPCA and Cats Protection have also voiced fears that the cap will reduce tenants’ flexibility to provide a higher deposit to cover the likes of pet damage.

The Assistant Director of External Affairs at the RSPCA, David Bowles, says: “We have yet to see this bill and will be looking to work with the Government to ensure there are no unintended consequences for pets within the legislation designed to improve tenancy conditions.

“Pets are part of our families and, as well as being wonderful companions, also bring us many benefits for our health and general wellbeing. We encourage landlords to allow tenants to take pets into homes, as it causes a lot of distress and upset when families aren’t able to take their pet with them, and charities such as the RSPCA are left picking up the pieces.”

He adds: “We have produced booklets for housing agencies and landlords, giving them useful and practical advice.”

Cats Protection’s Advocacy and Government Relations Officer, Madison Rogers, also comments: “As more and more people are living in privately rented accommodation across the UK, some owners are being forced to give up their cats, and others who would like a cat are denied the opportunity. Cats Protection believes that people should not be deprived of having the companionship, love and affection that a cat can bring to a household, and we are currently conducting research to find out the extent of the issue.

“We would also encourage housing providers and landlords to have responsible and reasonable cat policies and tenancy clauses, which could include the requirement for cats in tenanted property to be neutered, microchipped and vaccinated, as well as limits on the number of cats that can be owned per household.”

Would the tenancy deposit cap affect your flexibility in accepting tenants with pets?

Is Deposit-Free Renting on the Horizon? One Campaigner Thinks So

Published On: July 5, 2017 at 9:21 am


Categories: Landlord News

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Deposit-free renting could be on the horizon, according to deposit reform campaigner Ajay Jagota, of Dlighted.

Is Deposit-Free Renting on the Horizon? One Campaigner Thinks So

Is Deposit-Free Renting on the Horizon? One Campaigner Thinks So

With almost 5.8m households expected to be living in the private rental sector within four years, the amount of cash sitting in tenancy deposits is set to surge by around 40% – and that’s despite Government plans to cap security deposits to just one month’s rent, as announced in the recent Queen’s Speech.

Jagota believes that with the average UK tenant currently needing £967 for a deposit, around £5.8 billion worth of funds will be held as tenancy deposits by 2021, reflecting predicted growth of around 24% in the number of households renting privately.

Jagota described the figure as “the absolute scandal of wasting money to fill the funding gap on social care on literally nothing”.

The figures, from a survey conducted by Knight Frank, also show that 37% of tenants now rent out of choice rather than necessity, with renters naming the flexibility and fewer responsibilities of renting as primary reasons for not purchasing properties of their own.

The study also found that 68% of tenants still expect to be living in the private rental sector in three years’ time.

Jagota insists: “Tenancy deposits are a blatant economic inefficiency in serious need of Government intervention – an intervention which could save almost six million renters an average of £1,000 by the time of the next election.

“The £3.5 billion already is an eye-watering figure enough, but the £5.8 billion it could rise to within five years is monstrous. With 97% of deposits unnecessary, this is an absolute scandal.”

He believes: “I’m not convinced a deposit cap goes anywhere far enough, but I believe the industry has to accept that this is just the first step.

“I predicted pre-election that tenancy deposit reform is now irrevocably on the agenda and, even just this week, deposit-free renting was proposed in an influential blog by leading property academic Professor Brian Sturgess.

“The tide is turning in favour of deposit-free renting, and those of us who have worked so hard to put reform on the agenda – even when it has not been a very popular attitude in our industry – are entitled to feel a little vindicated.”

Jagota claims: “There are an infinite number of better ways all that money could be spent, and by abolishing outdated tenancy deposit schemes with deposit-free renting and landlord insurance, we can save renters a fortune while giving landlords better protection and boosting our economy, or facilitating generation rent onto the housing ladder via transfer of funds into Help To Buy ISAs.”

Do you agree that deposit-free renting is on the horizon? And is this a good thing?