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In case you missed it, the Tenants’ Fees Bill for England was announced in the Queen's Speech last week.
As well as the much-publicised ban on letting agents charging any form of fee to tenants, the Government surprisingly announced that the Bill will include provisions to limit tenancy deposits to the equivalent of one month’s rent, which will be of concern to some landlords.
Typically, landlords request more than the equivalent of a month's rent as a deposit; designed to guard against the situation of the tenant not paying the last month’s rent and leaving the landlord with no security. The introduction of deposit protection legislation has gone a long way towards encouraging tenants to pay their last month's rent, but there are some landlords who still charge the equivalent of 6+ weeks' rent for a deposit – and they will now have to alter their ways.
It’s important to note that the Tenants’ Fees Bill only applies to England, but the Welsh Government is currently undertaking research to establish whether or not a similar bill should be introduced here – which may well include the same cap on tenancy deposits.
Here at CPS Homes estate agents, we're experts in all things property. If you're a landlord looking to rent out your buy-to-let property in Cardiff, or if you're looking to purchase and additional property for your portfolio, we can help. Get in touch today on 02920 668585, email: enquiries@cpshomes.co.uk, or come and visit us in our Woodville Road branch in the heart of Cathays.