Cap on tenants deposits could mean fewer properties available to rent if they have pets.
According to the Queen’s Speech, a new Bill will cap deposits to the equivalent of one month’s rent.
The Bill is going to have major implications for tenants, particularly those with anything less than perfect references or those who have pets. At the moment, someone who may be viewed as a higher risk can mitigate this by paying a higher deposit so that the landlord is still happy to accept them as a tenant. If people in these circumstance can no longer pay a higher deposit, then there is a lot less chance that a landlord would want to accept them.
This will be the same for pet owners who also wish to rent. Tenants who have got pets always pay a slightly higher deposit to protect the landlord against the extra risk of damage to their property caused by their pet. Even as it is, the majority of landlords don’t accept pets, so if you can’t collect a higher deposit then there will be even fewer landlords who would allow pets.