Private renters are set to benefit from new measures reducing the amount tenants have to pay up front to secure a home from 6 weeks’ rent to 5 for annual rentals of under £50,000.
The move, announced as part of the , is a further step by Communities Secretary James Brokenshire MP towards ending costly fees imposed on tenants when they first move into their property - creating a fairer housing market that works for everyone.
Around 1 in 3 renters who currently pay a deposit are set to benefit from the change - saving tenants £64 million in the first 12 months by keeping more of their hard-earned cash, while also making sure landlords are able to recover costs in the event of damage to their property.
The new cap will apply to properties where the annual rent is less than £50,000. A deposit of 6 weeks’ rent will continue to apply where the annual rent is £50,000 or more.
The deposit cap of 5 weeks’ rent only applies to properties where the annual rent is less than £50,000. A deposit cap of 6 weeks’ rent will apply where the rent is £50,000 or greater. Properties where the annual rent is greater than £100,000 are out of scope.