Deposit passporting - have your say
Mary-Anne Bowring 11/07/2019
2687
The Push for Deposit Passporting: An Overview
In June, we blogged about the concept of rental deposit passporting—a system designed to simplify transferring deposits between landlords when tenants move properties. Housing Secretary James Brokenshire MP has now announced a Call for Evidence on tenancy deposit protection in England, inviting views on passporting and other reforms.
Government Goals: Addressing Tenant Challenges
The government aims to better understand the difficulties tenants face when securing a second deposit for a new rental. It also seeks to expedite deposit returns at the end of tenancies. The Call for Evidence will evaluate whether current affordability strategies meet tenant needs and if the market can innovate better solutions.
Evaluating Current Deposit Solutions
Responses to the Call for Evidence will inform the Tenancy Deposit Protection Working Group, which has explored potential improvements to deposit protection over the past 12 months. ARLA Propertymark, a member of this group, supports deposit portability but stresses that solutions must balance the interests of tenants, landlords, and agents.
ARLA Propertymark's Stance on Deposit Passporting
“For deposit passporting to work,” ARLA stated, “outgoing landlords must retain access to deposits for potential claims, while incoming landlords need certainty of receiving the full deposit agreed with the tenant.” They emphasized that affordability of bridging loans or insurance policies will be critical to the system’s success.
Key Considerations for Effective Implementation
ARLA highlights two priorities: safeguarding outgoing landlords’ rights and ensuring incoming landlords receive deposits promptly. Solutions must avoid placing undue financial burdens on tenants, such as high-interest bridging loans, to ensure widespread viability.
Have Your Say: Participate in the Call for Evidence
Landlords, property managers, and tenants are encouraged to share their insights. Download the Call for Evidence and submit feedback via email to DepositReform@communities.gov.uk or online by 5 September. Your input could shape the future of rental deposit systems in England.
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