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TODAY'S OTHER NEWS

Tories confirm plan to scrap Section 21 and introduce Lifetime Deposit

Boris Johnson launched the Conservative Party manifesto yesterday with a promise to “Get Brexit done”, and although the document was rather light on detail, there were a few housing policy suggestions, along with a pledge to freeze income tax levels, National Insurance and VAT. 

The document contained few surprises, with most of the main policies trailed in advance before or during the general election. 

The Tories, as previously reported, have vowed to introduce a new scheme to permit tenants to transfer their tenancy deposits when they move properties. 

The new Lifetime Deposit scheme will allow renters to transfer their deposit from one property to another instead of being left out of pocket for weeks while they wait to be reimbursed from their old landlord but have to spend money securing their new property.

The Conservatives have reaffirmed their commitment to abolish Section 21 of the Housing Act. 

In addition, a Social Housing White Paper will be brought forward if a Tory government is elected which will set out further measures to hand power to tenants and support the supply of social homes. 

The Tories will also commit to renewing the Affordable Homes Programme, in order to support the delivery of hundreds of thousands of affordable homes.

The party also pledges to end homelessness. 

Poll: Will you vote for the Conservatives at the general election?

PLACE YOUR VOTE BELOW

  • Bill Wood

    So how would this lifetime deposit thing work?
    What happens if, on the day of the tenant vacating (or shortly after) it transpires that the old landlord has a justifiable claim to some or all of the deposit?
    Would the new landlord then be faced with a new tenant and no deposit?
    Can’t get my head around the mechanics of this scheme.

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    It won't work, I'm not going to give the keys to a new tenant until I have the deposit in full, and I 'm not going to agree to release a deposit until I'm happy with the property.

     
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    Is landlords look after the tenant in lockdown. Then get a kick in the gut with comments like this from pm Boris.

     
    Matthew Payne

    I can only assume it will be one of these insurance backed schemes white labelled in some way to show it is gov approved. So in effect there won't be a single deposit that is being transferred from one tenancy to the next, therefore waiting becomes irrelevant, and tenant moves become fluid. The first landlord would make a claim on the insurance policy if there were dilaps/arrears etc and the second landlord would simply have a new policy start when the tenants move in. The tenant would pay the premium in each case as they do now on the zero deposit schemes. In effect deposits would be phased out.

     
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    Like most suggestions from people in power with no experience, it won't work. However it might flag up to the new landlord that there are issues with how the tenant left the old property! Another anti-tenant policy like encouraging landlords to apply inflation increases every opportunity!

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    Who is advising these people? Surely they have consulted with someone in the industry? In a fluffy ideal world transferring the deposit seems a good idea but we don't live in a fluffy ideal world. A lot of tenants don't leave the property as they found it. I still can't believe how few tenants actually bother to hoover up when they leave let alone fill the huge holes in the wall where the TV used to be or clean the oven!

  • Daniela Provvedi

    I would have hoped that the NLA or the RLA (have they merged yet?) advise these people on our behalf. The NLA / RLA should work harder to get the message through.

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    Boris, for your next holiday personally get yourself a six month lease on a flat somewhere and live in it. Talk to all the agents, property owners concerned, your new neighbours and If you can find neighbours who own their flat lease it would be well worth befriending them as well.

    These are the subjects that you need to understand legally and above all, practical terms:

    tenants sub lease
    flat owners leasehold lease
    land owners freehold lease
    managing agents contract
    freeholders contract
    block maintenance contract
    council regulation
    contract waste disposal because little coloured bins every where is an impossible dream
    effects of bad neighbours
    stupid smart meters
    That is enough for one tenancy period.

    You think running a country is tough?
    You expect renters to have all of the above as a cost free service! It isn't like Chequers.


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