Tenant deposits are set to be capped at a maximum of five weeks’ rent under new laws.
Under current legislation, landlords are able to charge a deposit that totals six weeks worth of rent.
But the government are set to bring in a legal cap of five weeks, after housing secretary James Brokenshire “overuled” chancellor Philip Hammond.
The Sun newspaper revealed Hammond, who reportedly earns £10,000 as a landlord, had
written to Cabinet members saying he did “not agree” to the proposed five-week cap.
The new despoit terms look to be drawn up in the Tenants’ Fees Bill, currently in its final stages through parliament.
In the letter seen by The Sun, Hammond wrote: “I cannot agree to the proposed concession to lower the deposit cap from six weeks’ rent to five weeks’ rent.
“Six weeks’ rent was already placing landlords at risk of uncovered loss for damage to property, as well as risk of loss of rent.
“This bill was always a high-risk measure. A cap of six weeks’ rent was already a major concession and I believe we have to hold the line at this level.”
The private rental market has become a key battleground for MPs keen to win votes from the five million tenants, which make up almost a fifth of all households.
In the 2010 general election, the Tories won more private renter voters than Labour, but in a poll conducted in March 2018, Labour had a 23-point lead over the Conservatives among ‘generation rent’.