The tenancy security deposits that tenants leave with landlords or their letting agents should be capped at a maximum of three weeks, and not the six weeks rent proposed as part of the Tenant Fees Bill introduced into Parliament last month.
The cap on security deposits was initially announced in November last year during the chancellor’s Autumn Statement.
Tenancy deposits are being capped because the government believes that they cause a significant affordability problem for tenants. But Labour firmly believes that six weeks is too high, which is why the party is attempting to amend the legislation to cut that cap in half.
Labour claims their plans would save tenants £575 on average compared to the government’s proposal of £1,150, based on a limit of six weeks’ rent.
Melanie Onn, Labour's shadow housing minister, said: “Labour is fighting for a fairer deal for all renters.
“We recognise the private rented sector is the fastest growing area of housing, and it is right that they are not exploited by unfair fees.
“This government has failed renters for the last eight years. Labour will hold them to account to make sure the power between landlords and tenants is rebalanced.”