The Conservatives have pledged to introduce a new scheme to allow tenants to transfer their tenancy deposits when they move homes.
The new Lifetime Deposit scheme will enable 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.
Boris Johnson insists that the move will “make the process of moving home easier and cheaper” for renters.
Johnson, in an effort to help more renters on to the housing ladder, will also vow to address planning laws to open up and speed-up construction of new sites and renew the Affordable Homes Programme with a view to building one million new homes by 2025.
The PM has also reaffirmed his commitment to scrap Section 21 of the Housing Act.
A number of landlords are likely to consider existing the PRS if the plans go ahead, thus reducing the supply of much needed private rental stock.
A recent report by Capital Economics on behalf of the National Landlords Association (NLA) forecasts that there will be a 20% drop in the number of properties available to rent if the most common route private landlords can take to regain possession of their property under the Housing Act 1988 is scrapped.
The report, ‘A new deal for renters? The unintended consequences of abolishing Section 21’, also predicts that a 59% reduction in housing available to tenants on housing benefit or Universal Credit, and a potential increase in rents for 13% of properties.
Chris Norris, director of policy and practice at the NLA, said: “The government has clearly failed to recognise the realities of the private rented sector by proposing the abolition of Section 21.
“Any government which thinks it appropriate to risk the loss of nearly one million rental homes at a time of housing crisis needs to reassess its priorities as a matter of urgency.”